0613882 acfr:GovernmentalFundsMember 2021-07-01 2022-06-30 0613882 acfr:InternalServiceFundsMember 2021-07-01 2022-06-30 0613882 acfr:ProgramRevenuesFromOperatingGrantsAndContributionsMember acfr:ComponentUnitDiscretelyPresentedMember 2021-07-01 2022-06-30 0613882 acfr:SuccessorHousingAgencyMember 2021-07-01 2022-06-30 0613882 acfr:OtherGovernmentalFundsMember 2021-07-01 2022-06-30 0613882 acfr:PrimaryGovernmentActivitiesMember 2022-06-30 0613882 acfr:GovernmentalActivitiesMember 2022-06-30 0613882 acfr:ProgramRevenuesFromChargesForServicesMember 2021-07-01 2022-06-30 0613882 2021-07-01 2022-06-30 0613882 acfr:GeneralFundMember 2021-07-01 2022-06-30 0613882 acfr:BusinessTypeActivitiesMember 2021-07-01 2022-06-30 0613882 acfr:BusinessTypeActivitiesEndeavorHallMember 2022-06-30 0613882 acfr:ProgramRevenuesFromChargesForServicesMember acfr:ComponentUnitDiscretelyPresentedMember 2021-07-01 2022-06-30 0613882 acfr:AmericanRescuePlanActMember 2022-06-30 0613882 acfr:GovernmentalActivitiesMember 2021-07-01 2022-06-30 0613882 acfr:CapitalImprovementProgramMember 2022-06-30 0613882 acfr:GovernmentalFundsMember 2022-06-30 0613882 acfr:ProgramRevenuesFromOperatingGrantsAndContributionsMember acfr:BusinessTypeActivitiesMember 2021-07-01 2022-06-30 0613882 acfr:GeneralFundMember 2022-06-30 0613882 acfr:ProgramRevenuesFromOperatingGrantsAndContributionsMember acfr:GovernmentalActivitiesMember 2021-07-01 2022-06-30 0613882 acfr:BusinessTypeActivitiesMember 2022-06-30 0613882 acfr:LandscapeMaintenanceDistrictMember 2022-06-30 0613882 acfr:BusinessTypeActivitiesEndeavorHallMember 2021-07-01 2022-06-30 0613882 acfr:InternalServiceFundsMember 2022-06-30 0613882 acfr:ProgramRevenuesFromCapitalGrantsAndContributionsMember acfr:BusinessTypeActivitiesMember 2021-07-01 2022-06-30 0613882 acfr:ProgramRevenuesFromCapitalGrantsAndContributionsMember acfr:ComponentUnitDiscretelyPresentedMember 2021-07-01 2022-06-30 0613882 acfr:SuccessorHousingAgencyMember 2022-06-30 0613882 acfr:CapitalImprovementProgramMember 2021-07-01 2022-06-30 0613882 acfr:ComponentUnitDiscretelyPresentedMember 2021-07-01 2022-06-30 0613882 acfr:ProgramRevenuesFromOperatingGrantsAndContributionsMember 2021-07-01 2022-06-30 0613882 acfr:AmericanRescuePlanActMember 2021-07-01 2022-06-30 0613882 acfr:ProgramRevenuesFromChargesForServicesMember acfr:GovernmentalActivitiesMember 2021-07-01 2022-06-30 0613882 acfr:ProgramRevenuesFromChargesForServicesMember acfr:BusinessTypeActivitiesMember 2021-07-01 2022-06-30 0613882 acfr:LandscapeMaintenanceDistrictMember 2021-07-01 2022-06-30 0613882 acfr:ProgramRevenuesFromCapitalGrantsAndContributionsMember acfr:GovernmentalActivitiesMember 2021-07-01 2022-06-30 0613882 acfr:PrimaryGovernmentActivitiesMember 2021-07-01 2022-06-30 0613882 acfr:OtherGovernmentalFundsMember 2022-06-30 0613882 acfr:ProgramRevenuesFromCapitalGrantsAndContributionsMember 2021-07-01 2022-06-30 0613882 Miscellaneous Tier I 2021-07-01 2022-06-30 0613882 Miscellaneous Tier II 2021-07-01 2022-06-30 0613882 Miscellaneous PEPRA 2021-07-01 2022-06-30 0613882 Safety Tier I 2021-07-01 2022-06-30 0613882 Safety Tier II 2021-07-01 2022-06-30 0613882 Safety PEPRA 2021-07-01 2022-06-30 iso4217:USD

Jump to financial tables

City Of Clayton, California
Government Wide
Statement Of Net Position
June 30, 2022

Governmental Activities Business Type Activities Total Primary Government
ASSETS
Current Assets:
Cash And Cash Equivalents And Investments $ 13,441,679 $ - $ 13,441,679
Accounts Receivable Net Of Allowance 1,133,315 - 1,133,315
Accrued Interest Receivable 25,257 - 25,257
Internal Balance 120,893 (120,893) -
Prepaid Expenses 52,578 - 52,578
Total Current Assets 14,773,722 (120,893) 14,652,829
Noncurrent Assets:
Other Capital Assets 3,170,453 - 3,170,453
Notes And Loans Receivable Net Noncurrent 3,311,550 - 3,311,550
Capital Assets Not Being Depreciated 3,133,754 167,738 3,301,492
Capital Assets Being Depreciated Net 25,982,451 841,465 26,823,916
Total Noncurrent Assets 35,598,208 1,009,203 36,607,411
Total Assets 50,371,930 888,310 51,260,240
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Of Resources Pension 1,285,641 - 1,285,641
Deferred Outflows Of Resources OPEB - - -
Total Deferred Outflows of Resources 1,285,641 - 1,285,641
LIABILITIES
Current Liabilities:
Accounts Payable 149,907 2,671 152,578
Deposits Held for Others - 5,500 5,500
Accrued Wages Payable 37 - 37
Unearned Revenue 332,166 - 332,166
Compensated Absences Payable Current 83,645 - 83,645
Other Current Liabilities 74,358 - 74,358
Total Current Liabilities 640,113 8,171 648,284
Noncurrent Liabilities:
Compensated Absences Payable Non Current 83,645 - 83,645
Net OPEB Liability 578,315 - 578,315
Net Pension Liability 2,759,739 - 2,759,739
Leases Payable Due In More Than One Year 244,640 - 244,640
Total Noncurrent Liabilities 3,666,339 - 3,666,339
Total Liabilities 4,306,452 8,171 4,314,623
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Of Resources Pension 2,471,384 - 2,471,384
Deferred Inflows Of Resources OPEB - - -
Total Deferred Inflows of Resources 2,471,384 - 2,471,384
NET POSITION
Net Investment In Capital Assets 29,116,205 1,009,203 30,125,408
Restricted Net Position For Other 9,890,048 - 9,890,048
Total Net Position 39,006,253 1,009,203 40,015,456



City Of Clayton, California
Government Wide
Statement Of Activities
For The Year Ended June 30, 2022

Expenses Charges For Services Operating Grants And Contributions Capital Grants And Contributions Governmental Activities Business Type Activities Total Primary Government
PRIMARY GOVERNMENT
Governmental Activities:
General Government $ 2,629,048 $ 437,626 $ 13,808 $ - $ (2,177,614) $ - $ (2,177,614)
Public Safety Services 2,736,817 48,292 397,461 - (2,291,064) - (2,291,064)
Public Works Services 2,509,096 331,218 2,344,113 44,634 210,869 - 210,869
Community and Economic Development Services 356,450 142,299 - 76,140 (138,011) - (138,011)
Parks and Recreation 729,729 42,903 - - (686,826) - (686,826)
Total Governmental Activities 8,961,140 1,002,338 2,755,382 120,774 (5,082,646) - (5,082,646)
Business-type Activities:
Convention Center Services 60,694 16,847 - - - (43,847) (43,847)
Total Business-type Activities 60,694 16,847 - - - (43,847) (43,847)
Total Primary Government 9,021,834 1,019,185 2,755,382 120,774 (5,082,646) (43,847) (5,126,493)
COMPONENT UNITS
Total Component Units - - - - - - -
GENERAL REVENUES AND TRANSFERS
General revenues:
Property Tax 2,846,766 - 2,846,766
Special Assessments 1,348,657 - 1,348,657
Sales and Use Tax 563,908 - 563,908
Business License Tax 162,881 - 162,881
Fines and Forfeitures and Penalties 587,740 - 587,740
Payment in Lieu of Taxes 174,443 - 174,443
Investment Income (281,502) - (281,502)
Other General Revenues 54,512 - 54,512
Gain (Loss) on Sale of Capital Assets 6,958 - 6,958
Total General Revenues 5,464,363 - 5,464,363
Transfers:
Total Transfers - - -
Total General Revenues and Transfers 5,464,363 - 5,464,363
NET POSITION
Change in Net Position 381,717 (43,847) 337,870
Net position (deficit), beginning of year 44,498,018 923,986 45,422,004
Net position (deficit), end of year 44,879,735 880,139 45,759,874



City Of Clayton, California
Governmental Funds
Balance Sheet
June 30, 2022

General Fund Landscape Maintenance District Successor Housing Agency American Rescue Plan Act Capital Improvement Program Other Governmental Funds Total Governmental Funds
ASSETS
Pooled Cash And Investments $ 5,985,880 $ 693,391 $ 1,857,892 $ - $ 2,674,360 $ 1,769,715 $ 12,981,238
Accounts Receivable Net Of Allowance 646,294 - - - - 487,021 1,133,315
Accrued Interest Receivable 25,257 - - - - - 25,257
Other Assets - - 3,170,453 - - - 3,170,453
Notes Receivable - - 3,311,550 - - - 3,311,550
Prepaid Deposits 52,578 - - - - - 52,578
Due from Others 120,893 - - - - - 120,893
Travel Advances Receivable - - - - - - -
Total Assets 6,830,902 693,391 8,339,895 - 2,674,360 2,256,736 20,795,284
LIABILITIES
Accounts Payable 1,826 54,858 - - 67,916 24,992 149,592
Other Liabilities 71,658 - - - - 2,700 74,358
Accrued Wages Payable 37 - - - - - 37
Compensated Absences Payable 83,645 - - - - - 83,645
Unearned Revenue - - - - - 332,166 332,166
Total Liabilities 157,166 54,858 - - 67,916 359,858 639,798
DEFERRED INFLOW OF RESOURCES
Other Deferred Inflows Of Resources 260,379 - 2,722,200 - - - 2,982,579
Total Deferred Inflows of Resources 260,379 - 2,722,200 - - - 2,982,579
FUND BALANCES
Fund Balance Nonspendable 173,471 - - - - - 173,471
Fund Balance Restricted - 32,509 5,617,695 - - 1,069,391 6,719,595
Fund Balance Committed 495,019 - - - - 709,802 1,204,821
Fund Balance Assigned - 606,024 - - 2,606,444 117,685 3,330,153
Fund Balances Unassigned 5,744,867 - - - - - 5,744,867
Total Fund Balances 6,413,357 638,533 5,617,695 - 2,606,444 1,896,878 17,172,907
Total Liabilities, Deferred Inflows of Resources and Fund Balances 6,830,902 693,391 8,339,895 - 2,674,360 2,256,736 20,795,284



City Of Clayton, California
Governmental Funds
Reconciliation Of Governmental Funds Balance Sheet To The Statement Of Net Position
June 30, 2022

Amount
Fund balances for governmental funds 17,172,907
CAPITAL ASSETS
Capital assets used in governmental activities are not current financial resources and therefore are not reported in the Governmental Funds Balance Sheet.
Non-depreciable capital assets 3,133,754
Depreciable capital assets (net of internal service fund assets of $493,547) 25,441,841
ACCRUAL OF NON-CURRENT REVENEUS AND EXPENSES
Unavailable revenue which are deferred inflows of resources in the Governmental Funds because they are not available currently, but are taken into revenue in the statement of activities. 2,982,579
LONG-TERM ASSETS AND LIABILITIES
Long-term liabilities are not due and payable in the current period and therefore are not reported in the Governmental Funds Balance Sheet.
Net OPEB liability not reported on the Governmental Funds Balance Sheet 578,315
Compensated absences payable 83,645
Net pension liability not reported on the Governmental Funds Balance Sheet 2,759,739
Lease liability not reported on the Governmental Funds Balance Sheet 244,640
DEFERRED INFLOWS AND OUTFLOWS
Deferred inflows/(outflows) of resources for not reported on the Governmental Funds Balance Sheet
Deferred outflows of resources for net pension liability 1,285,641
Deferred inflows of resources for net pension liability 2,471,384
Deferred outflows of resources for net OPEB liability
Deferred inflows of resources for net OPEB liability
ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Government-wide Statement of Net Position. 1,000,736
Net Position of Governmental Activities 44,879,735



City Of Clayton, California
Governmental Funds
Statement Of Revenues, Expenditures And Changes In Fund Balance
For The Year Ended June 30, 2022

General Fund Landscape Maintenance District Successor Housing Agency American Rescue Plan Act Capital Improvement Program Other Governmental Funds Total Governmental Funds
REVENUES
Property Tax $ 2,846,766 $ - $ - $ - $ - $ - $ 2,846,766
Grants and Entitlements Restricted for Specific Programs - - 111,400 - - - 111,400
Special Assessments - 1,204,882 - - - 442,230 1,647,112
Sales and Use Tax 563,908 - - - - - 563,908
Business Licenses and Permits 162,881 - - - - - 162,881
Licenses and Permits and Franchise Fees 114,026 - - - - 140,326 254,352
Fines and Forfeitures and Penalties 151,409 - - - - - 151,409
Grants, Contributions and Donations from Federal Governmental Entities 135,233 - - 1,467,024 - 1,170,041 2,772,298
Vehicles Tax - - - - - - -
Payment in Lieu of Taxes 174,443 - - - - - 174,443
Cable Franchise Fees 587,740 - - - - - 587,740
Charges for Services, Fees 305,645 - - - - - 305,645
Use of Money and Property (185,018) (24,383) 17,961 - (80,986) (52,490) (324,916)
Other Revenues 40,844 - - - - 648 41,492
Total Revenues 4,897,877 1,180,499 129,361 1,467,024 (80,986) 1,700,755 9,294,530
EXPENDITURES
General Government Services, Administration 2,570,417 - - - - 126,650 2,697,067
Public Safety Services 2,684,319 - - - - 130,541 2,814,860
Public Works Services 333,423 1,424,676 - - - 383,356 2,141,455
Community And Economic Development Services 299,175 - - - - - 299,175
Parks and Recreation Department 336,592 - - - - 140,808 477,400
Capital Outlay 22,168 161,367 - - 869,925 48,889 1,102,349
Total Expenditures 6,246,094 1,586,043 - - 869,925 830,244 9,532,306
Excess (Deficiency) of Revenues Over (Under) Expenditures (1,348,217) (405,544) 129,361 1,467,024 (950,911) 870,511 (237,776)
OTHER FINANCING SOURCES (USES)
Other Financing Sources (Uses) - - 58,091 - - - 58,091
Transfers In 1,597,681 - - - 1,632,609 21,214 3,251,504
Transfers Out - (41,809) - (1,467,024) - (1,742,671) (3,251,504)
Total Other Financing Sources (Uses) 1,597,681 (41,809) 58,091 (1,467,024) 1,632,609 (1,721,457) 58,091
Net Change in Fund Balances 249,464 (447,353) 187,452 - 681,698 (850,946) (179,685)
FUND BALANCES
Beginning of year, restated 6,163,893 1,085,886 5,430,243 - 1,924,746 2,747,824 17,352,592
End of fiscal year 6,413,357 638,533 5,617,695 - 2,606,444 1,896,878 17,172,907



City Of Clayton, California
Governmental Funds
Reconciliation Of Governmental Funds Statement Of Revenues, Expenditures, And Changes In Fund Balances To The Statement Of Activities And Changes In Net Position
For The Year Ended June 30, 2022

Amount
Net Change in Fund Balances- Total Governmental Funds 179,685
Amounts reported for governmental activities in the Statement of Activities are different because:
ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide (or require) the use of current financial resources and therefore are not reported as revenue or expenditures in the Governmental Funds (net change).
Net change in post-employment benefits (OPEB) liability and deferred inflows (outflows) 74,942
Long-term compensated absences payable 745
Net change in pension liability and deferred inflows (outflows). 730,720
Unavailable revenues 113,947
Net change in lease liability 244,640
CAPITAL ASSET TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense
Capital asset acquisition, excluding internal service fund asset acquisitions. 1,217,507
Depreciation expense is deducted from the fund balance (Net of internal service fund depreciation of $100,425). 947,745
ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net gain or loss of the internal service funds is reported with governmental activities. 4,806
Change in Net Position of Governmental Activities on Statement of Activities 381,717



City Of Clayton, California
Proprietary Funds
Statement Of Net Position
June 30, 2022

Business Type Activities Endeavor Hall Internal Service Funds
ASSETS
Current Assets:
Cash And Cash Equivalents And Investments $ - $ 460,441
Total Current Assets - 460,441
Noncurrent Assets:
Land 167,738 -
Capital Assets Being Depreciated Net 841,465 540,610
Total Noncurrent Assets 1,009,203 540,610
Total Assets 1,009,203 1,001,051
LIABILITIES
Current Liabilities:
Accounts payable 2,671 315
Other Accounts Payable And Accrued Liabilities - -
Deposits Held for Others 5,500 -
Due to other funds 120,893 -
Total Current Liabilities 129,064 315
Noncurrent Liabilities:
Total Noncurrent Liabilities - -
Total Liabilities 129,064 315
NET POSITION
Net investment in capital assets 1,009,203 540,610
Unrestricted Net Position (129,064) 460,126
Total Net Position 880,139 1,000,736



City Of Clayton, California
Proprietary Funds
Statement Of Revenues, Expenses, And Changes In Net Position
For The Year Ended June 30, 2022

Business Type Activities Endeavor Hall Internal Service Funds
OPERATING REVENUES
Charges for Services $ 16,847 $ 111,900
Total Operating Revenues 16,847 111,900
OPERATING EXPENSES
Benefits Expense 4,833 -
Expenses for Institutional Support 26,989 8,564
Depletion, Depreciation and Amortization Expense 28,872 100,425
Total Operating Expenses 60,694 108,989
NONOPERATING REVENUES (EXPENSES)
Gain (Loss) on Sale of Capital Assets - 6,958
Investment Income - (14,675)
Total Nonoperating Revenues (expenses) - (7,717)
Income (loss) before capital contributions (43,847) (4,806)
CAPITAL CONTRIBUTIONS
Total Capital Contributions - -
Change in net position (43,847) (4,806)
NET POSITION
Net position, beginning of year 923,986 1,005,542
Net position, end of year 880,139 1,000,736



City Of Clayton, California
Proprietary Funds
Statement Of Cash Flows
For The Year Ended June 30, 2022

Business Type Activities Endeavor Hall Internal Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Proceeds from Sales and Services $ 20,847 $ 111,900
Payments to suppliers (24,734) (4,001)
Payments to employees (4,833) -
Payments for Claims - (4,428)
Net cash provided by (used in) operating activities (8,720) 103,471
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Proceeds From Transfers In 8,720 -
Net cash flows from noncapital financing activities 8,720 -
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Payments to Purchase Capital Assets - (153,184)
Proceeds from Sale of Capital Assets - 6,958
Net cash provided by (used in) capital and related financing activities - (146,226)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Interest on Investments - (14,675)
Net cash provided by (used in) investing activities - (14,675)
Net Increase (Decrease) in Cash and Cash Equivalents - (57,430)
CASH AND CASH EQUIVALENTS
Cash and cash equivalents, beginning of year - 517,871
Cash and cash equivalents, end of year - 460,441



City of Clayton, California Annual Financial Report For the Year Ended June 30, 2022

INTRODUCTORY SECTION

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Table of Contents

Page

INTRODUCTORY SECTION

1

Table of Contents……………………………………………………………………………….

Letter of Transmittal……………………………………………………………………………

4

Mission Statement……………………………………………………………………………...

9

Organizational Chart…………………………………………………………………………...

10

Principal Officers, Department Heads and Advisory Bodies

11

Regional Map of Clayton and Nearby Cities

12

FINANCIAL SECTION

Independent Auditors’ Report……………………………. . …………………………………

17

Management's Discussion and Analysis………………………. . . …………………………. .

21

Basic Financial Statements

Government-Wide Financial Statements:

Statement of Net Position………………………………………………. . ……………

33

Statement of Activities and Changes in Net Position………………………. . …….

34

Governmental Fund Financial Statements:

Balance Sheet……………………………………………………………. . …………….

39

Reconciliation of Governmental Funds Balance Sheet to the Statement of

Net Position…………………………………………………………………………

42

Statement of Revenues, Expenditures and Changes in Fund Balances…………. .

43

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and

Changes in Fund Balances to the Statement of Activities and Changes in Net

Position…. . . ……………………………………. . …………. . .

45

Proprietary Fund Financial Statements:

Statement of Net Position………………………………………. . ……………………

47

Statement of Revenues, Expenses and Changes in Net Position…………. . . ……. .

48

Statement of Cash Flows……………………………………………………. . ……….

49

Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position…………………………………. . ……………. .

51

Statement of Changes in Fiduciary Net Position……………………. . …………….

52

Notes to Basic Financial Statements…………………………………. . ……………………. .

55

1

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Table of Contents

FINANCIAL SECTION (Continued)

Required Supplementary Information

Budgetary Comparison Schedules

General Fund……………………………………………………. . . ……………………

103

Landscape Maintenance District ……………. …………. . . ………………………….

104

Successor Housing Agency………. . ……………. . . …………………………………. .

105

American Rescue Plan Act………. . ……………. . . …………………………………. .

106

Pension Plan Funding Status

Schedule of Proportionate Share of Net Pension Liability…. . …………………….

107

Schedule of Pension Plan Contributions…. . …. . . ……………………………………

108

Other Postemployment Benefits Plan Funding Status

Schedule of Changes in the Net OPEB Liability and Related Ratios. …………….

109

Schedule of OPEB Plan Contributions……. . …. . . ……………………………………

110

Notes to the Required Supplementary Information………………………………………….

111

Supplementary Information

Major Funds

Budgetary Comparison Schedules. . . . . …………………………………………. . ……

114

Non-Major Governmental Funds Financial Statements:

Combining Balance Sheet………………………………………………………. . ……

117

Combining Statement of Revenues, Expenditures and Changes in Fund

Balances………………………………………………………. . . ……………………

119

Budgetary Comparison Schedules……………………………………. . …………….

121

Internal Service Funds:

Combining Statement of Net Position. . . ………………………………. . ……………

133

Combining Statement of Revenues, Expenses and Changes in Net

Position…………………………………………………………. . . ………………….

134

Combining Statement of Cash Flows………………………………. . ………………

135

Agency Funds:

Combining Statement of Changes in Assets and Liabilities………………. . ……. .

137

2

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Table of Contents

STATISTICAL SECTION (UNAUDITED)

Statistical Section Table of Contents…………………………………………………..

142

Financial Trends

Net Position by Component ……………………………………………………………

143

Changes in Net Position ……………………………………………………………….

145

Fund Balances of Governmental Funds ……………………………………………….

147

Changes in Fund Balances of Governmental Funds …………………………………..

149

Revenue Capacity

Property Tax Levies and Collections ……………………………………………..........

151

Assessed Value and Estimated Actual Value of Taxable Property ……………………

152

Taxable Assessed Value by Source ………………………………………………

153

Property Tax Rates …………………………………………………………………….

155

Principal Property Tax Payers ………………………………………………………..

157

Debt Capacity

Ratios of Debt Outstanding ……………………………………………………….......

159

Computation of Direct and Overlapping Debt ……….……………………………….

160

Legal Debt Margin ………………………………………………………………….....

161

Bonded Debt Pledged Revenue Coverage ………………………………………………..

163

Demographic and Economic Information

Demographic and Economic Statistics …………………………………………………

164

Operating Information

Full-time Equivalent City Employees by Function …………………………………….

165

Operating Indicators by Function ………………………………………………………

167

Capital Asset Statistics by Function ……………………………………………………

169

General Information …………………………………………………………………….

171

ADDITIONAL REPORTS

Independent Auditors’ Report on Internal Controls over Financial Reporting

and on Compliance and other Matters Based on an Audit of Financial Statements

Performed in Accordance with Government Auditing Standards …………………….

173

3

CITY COUNCIL

COMMUNITY

CARL “CW” WOLFE, MAYOR

PETER CLOVEN, VICE MAYOR

DEVELOPMENT

(925) 673‐7340

6000 HERITAGE TRAIL CLAYTON, CALIFORNIA 94517‐1250

JEFF WAN, COUNCILMEMBER

ENGINEERING

(925) 969‐8181

TELEPHONE (925) 673‐7300 FAX (925) 672‐4717

JIM DIAZ, COUNCILMEMBER

HOLLY TILLMAN , COUNCILMEMBER

January 23, 2023

Honorable Mayor and Members of the City Council

City of Clayton

We are pleased to submit the City of Clayton’s Annual Comprehensive Financial Report (ACFR) for the Fiscal year ended June 30, 2022. Since its incorporation, the City has submitted an annual audited Financial Report to the City Council and its citizens in accordance with California Government Code section 25253. The ACFR provides the public, businesses, property owners, investors and all interested parties with an overview of the City’s finances. It is important to note the acronym for this report has changed from CAFR to ACFR as the prior acronym can be considered an offensive racial slur and is no longer used. The information in this ACFR is prepared in accordance with Generally Accepted Accounting Principles (GAAP) and includes an “unmodified opinion” (the highest rating) on the report by an independent certified public accounting firm, Cropper Rowe, LLP.

Although we rely on the standards and expertise of these independent auditors, the responsibility for the accuracy and fair representation of the ACFR ultimately rests with City management. We believe the data presented in this Report is accurate in all material respects and all statements and disclosures have been included necessary for the reader to obtain a thorough understanding of the City’s financial activities. Management of the City has established an internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile reliable and timely information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh its benefits, the City’s framework of internal controls has been designed to provide reasonable rather than absolute assurance that its financial statements will be free from material misstatements.

For readers interested in a more detailed review of the City’s financial statements, a section in the ACFR called “Management Discussion and Analysis” (MD&A) has been included in accordance with Government Accounting Standards Board (GASB) Statement 34, Basic Financial Statements – And Management’s Discussion and Analysis – For State and Local Governments . The MD&A recounts the financial highlights of the City and provides additional analyses on the variances and trends reported as part of the financial statements. The MD&A further discloses significant items impacting the financial condition of the City and is designed to be read in conjunction with this Letter of Transmittal.

City Profile

The City of Clayton was incorporated in 1964 and is located in Contra Costa County, a suburban region in the eastern portion of the San Francisco-Bay Area. Pursuant to its adopted budget for the fiscal year ending June 30, 2022, the City has a permanent staff of 27.4 full- time equivalent employees which serves approximately 11,585 residents in a land area of approximately 4 square miles. Nestled in a small valley at the northern base of Mt. Diablo, the boundaries of the City are mostly developed with a

4

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Letter of Transmittal

City Profile , continued

strong community emphasis on open space preservation and maintenance of an extensive network of trails. The City continues to show strength as a safe community with attractive residential neighborhoods as a gateway to the fast paced and robust Bay Area economy.

The City operates under a Council- Manager form of government and provides many essential public services to the community. The City is governed by a five-member City Council elected at large, serving staggered terms of four years. The Mayor and Vice Mayor are selected by the City Council each year from its membership and serve one-year terms. The City Council is responsible for setting policies, adopting City ordinances, resolutions, the annual budget, appointing commissions and committees, and hiring the City Manager and City Attorney, among other key duties. The City Manager is responsible for implementing the City Council’s policies, ordinances and directives, overseeing the daily operations of the City, and appointing all department heads and through them all other employees of the City.

As presented in the City’s government-wide statement of activities, pursuant to GASBS 34, the City’s numerous departments and restricted- use funds accounting for public services are consolidated into higher-level programs , which include: public safety, public works, parks and recreation services, community and economic development, and general government. The public safety program is composed of an in-house police department, staffed with eleven (11) full-time sworn police officers and two (2) administrative personnel dedicated to the function of police services. Public works tracks the maintenance of public landscaping (i.e. street medians and shoulders, sub-division entryways, etc.), facilities, transportation infrastructure (i.e. streets, lighting, traffic signals, etc.), as well as contract City engineering services for management of the City’s Capital Improvement Program as well as land development regulatory needs. In their capacity of providing parks and recreation services, the City’s in-house maintenance department oversees the maintenance of the Clayton Community Library, the Clayton Community Park, The Grove Park, various neighborhood parks, and the historic Endeavor Hall rental facility. The community and economic development program consists of two (2) in-house staff providing planning and land-use regulatory services as well as the functions of economic development and affordable housing. Finally, the general government program reports legislative and support costs indispensable in providing in-house public services and maintains compliance an ever-expanding list of legal, fiscal and other statutory requirements imposed by the State of California.

The City’s fiscal year runs from July 1st through June 30th . Each year, the City Manager presents an annual budget to the City Council for adoption by Resolution on or before June 30th in accordance with Clayton Municipal Code section 3.02.040. On an interim basis the budget is monitored continually with the budgetary level of control maintained at the fund level.

Economic Condition and Outlook

Essentially a cul-de-sac hugging the base of acclaimed Mt. Diablo, Clayton maintains a small-town atmosphere while its relative proximity to California State Highway 24 and neighboring city BART stations make it ideal for commuters. In addition, the semi-rural setting, low crime rate and excellent middle and elementary public schools make Clayton attractive to families of all types.

5

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Letter of Transmittal

Economic Condition and Outlook, continued

Its residents are generally highly educated with approximately 57.8% of adults greater than age 25 having a bachelor’s degree or higher. In June of 2022, the unemployment rate of the City was 3.0%, compared to 3.20% and 4.0% for Contra Costa County and the State of California, respectively. In 2020 the median household income in the City was $153,607 compared to $87,355 for the state. The median age of Clayton residents is 43.1 as of the 2021 calendar year. The median sales price of homes in Clayton at June 30, 2022 was $ 1,050,000, a 8.7% year over year decrease. Despite this decline, property tax and sales & use tax revenues remain relatively strong.

In order, the City General Fund’s top revenue sources are: in-lieu vehicle license fees (VLF – paid from the state’s portion of property taxes); secured property taxes; franchise fees; and sales & use taxes (including the state- allocated “triple flip” prior to the fiscal year ending June 30, 2017). The following chart illustrates the ten-year trend of these four major revenue sources for the City taken from the 2022-23 Adopted Budget:

6

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Letter of Transmittal

Altogether, these four primary revenue sources (Property Tax In-Lieu 22.1%, Property Taxes 20.6%, Franchise Fees 10.7%, Sales and Use Taxes 10.5%) comprise 63.9% of General Fund revenues per the adopted budget for the fiscal year ending June 30, 2023. A non-recurring spike was realized in sales and use taxes six years ago in the year ended June 30, 2017 attributable to the City receiving a final true-up Triple Flip allocation from the state following the statutory dissolution of this process effective January 1, 2017. Accordingly, the following year realized a dip back to “normal” sales & use tax trend levels. In the long-run however, given the suburban composition of the City and its geographic boundaries limiting future development, management anticipates slow growth for the next ten years in sales & use taxes and franchise fees and moderate growth in property tax revenue (including in-lieu VLF property taxes received from the state) . With increasing telecommunications technologies, cable-based franchise fees could be a declining or at-risk revenue, while other factors such as weather patterns and sustainable energy trends could impact similar franchise fee revenue. Given the recent U.S. Supreme Court South Dakota v. Wayfair ruling, it is reasonably possible the City will see an increase in sales & use tax revenue in forthcoming years with the definition of eligible taxable sales transactions now potentially including all online sales where “substantial nexus” requirements exist with online sellers in California.

Long‐Term Financial Planning

As of the year ended June 30, 2022, the City of Clayton’s financial condition remains sound. An indicator of financial condition is the level of fund balances, both reserved and unreserved, in the City’s General Fund. The City Council has directed an absolute minimum reserve of $250,000 as its never-to-be-expended “catastrophic reserve.” In practice, due to the effectiveness in fiscal management, this policy has been easily achieved, indicating perhaps this floor requirement should be elevated in the future. However, the standing Policy Goal of the City Council is to establish and retain an undesignated reserve of 50% the annual General Fund operating budget. At June 30, 2022, the total unassigned General Fund reserve balance is $6,068,266 or .97 times the size of the adopted General Fund operating budget for the fiscal year ending June 30, 2022. This means in an emergency scenario, the City could operate over an entire year on reserves alone.

The City of Clayton maintains a five-year Capital Improvement Program (CIP), which serves as its planning document to ensure its infrastructure is well maintained. The City prioritizes roads for maintenance and reconstruction based on the relative pavement condition index, with other infrastructure and facility improvement projects prioritized at the discretion of the City Council. Over the course of the last 10 years the City has invested approximately $1.0 million into facility and infrastructure capital improvements, funded by Highway User Tax Apportionments (i.e. HUTA or “gas taxes”), local Measure J taxes, redevelopment property tax increment allocations (prior to the dissolution of the Clayton Redevelopment Agency in 2012), and other state and federal grants. For the upcoming fiscal year ending June 30, 2023, the City’s CIP is expected to invest an additional $1,362,697 into transportation and general infrastructure maintenance and improvement needs of the community.

7

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Letter of Transmittal

Acknowledgements

The preparation of an ACFR cannot be accomplished without the professional, efficient and dedicated services of the Admin/Finance/Legal Department staff (in particular, Accounting Technician Jennifer Giantvalley), and the independent accounting firm of Cropper Rowe, LLP. We also thank the honorable members of the City Council and the various departments for their cooperation and support in planning and conducting the financial operations of the City during the fiscal year.

Respectfully Submitted,

Reina J. Schwartz Nitish Sharma

City Manager Finance Director (Interim)

8

OUR MISSION

To be of exemplary service to the Clayton community with an emphasis on:

OUR VALUES

 Courtesy  Inclusiveness

 Creativity  Informed risk taking

 Diversity  Open communication

 Employee participation  Professionalism

 Ethical behavior  Trustworthiness

 Fiscal responsibility

OUR VISION

The City of Clayton organization will be recognized as a premier small city. Customer service will be our hallmark; organizational processes will be a model of efficiency and effectiveness; innovation will be common place; and excellence of work product will be the norm. The employees will enjoy their work environment, and each will be a valued and respected member in his or her field of work. All residents and the City Council will be proud of their City government.

9

Finance Director

10

DIRECTORY OF PRINCIPAL OFFICIALS AND ADVISORY BODIES

As of report issuance

CITY COUNCIL

Jeff Wan, Mayor

Jim Diaz, Vice Mayor

Peter Cloven, Councilmember

Holly Tillman, Councilmember

Kim Trupiano, Councilmember

COMMISSIONS

Planning Commission

COMMITTEES

Trails and Landscaping Committee

APPOINTED OFFICIALS AND DEPARTMENT HEADS

Reina Schwartz

City Manager

Hank Stratford

City Treasurer

Nitish Sharma

Finance Director (Interim)

Richard McEachin

Chief of Police

Janet Calderon

City Clerk / HR Manager

Dana Ayers

Community Development Director

Jim Warburton

Maintenance Supervisor

Malathy Subramanian

City Attorney (contract)

Larry Theis

City Engineer (contract)

FINANCE TEAM

Jennifer Giantvalley

Accounting Technician

Richard Sanders

Accountant (consultant)

11

Regional Map of Clayton, California

And Nearby Cities

12

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13

FINANCIAL SECTION

14

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15

INDEPENDENT AUDITORS’

REPORT

16

INDEPENDENT AUDITOR’S REPORT

To the City Council

City of Clayton, California

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clayton, Clayton, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Clayton’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clayton, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Clayton and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Clayton’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting

17

from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards , we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Clayton’s internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Clayton’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, pension plan funding status, other postemployment benefits plan funding status, and budgetary comparison information on pages 21-31 and 103-111 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Clayton’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and

18

19

MANAGEMENT’S DISCUSSION AND ANALYSIS

20

Management of the City of Clayton (the "City") provides this Management’s Discussion and Analysis of the City's Basic Financial Statements for readers of the City's financial statements. This narrative overview and analysis of the financial activities of the City is for its fiscal year ended June 30, 2022. We encourage readers to consider this information in conjunction with the additional information that is furnished with the City's financial statements, which follow.

FINANCIAL HIGHLIGHTS - PRIMARY GOVERNMENT Government -Wide Highlights

Net Position - The assets of the City of Clayton exceeded its liabilities at the close of the year ended June 30, 2022, by $45,759,874. Of this amount, $5,744,418 was reported as "unrestricted net position" and may be used to meet the ongoing obligations to citizens and creditors.

Changes in Net Position - The City's total net position increased by $337,870 in the fiscal year ending June 30, 2022. Net position of governmental activities increased by $381,717, while net position of business-type activities decreased by $43,847.

Major Fund Highlights

Governmental Funds – As of the year ended June 30, 2022, the City's governmental funds reported a combined ending fund balance of $17,172,907. Of this amount $5,744,867 represents "unassigned fund balances" available for appropriation.

General Fund - The unassigned fund balance of the General Fund on June 30, 2022 was $5,744,867, while the non-spendable and committed fund balances were $173,471 and $495,019 respectively.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the City of Clayton's basic financial statements. The City of Clayton's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains required supplementary information and supplemental information in addition to the basic financial statements themselves.

Government-wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the City of Clayton's finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the City of Clayton's assets and liabilities, with the difference between the two reported as net position . Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Clayton is improving or deteriorating.

21

OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Government-wide Financial Statements, Continued

The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows . Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e. g. uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City of Clayton that are principally supported by taxes and intergovernmental revenues ( governmental activities ) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities ). The governmental activities of the City of Clayton include general government, public safety, public works, community and economic development, and parks and recreation services. The business-type activities of the City of Clayton include the activities of the Endeavor Hall enterprise fund.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Clayton, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Clayton can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources , as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long- term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities .

22

OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Fund Financial Statements, Continued

The City of Clayton maintains fifteen individual governmental funds. Information is presented separately in the government funds balance sheet and governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, Landscape Maintenance District, Housing Successor Agency, and Capital Improvement Program, all of which are reported as major funds.

Proprietary Funds

The City of Clayton maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government- wide financial statements. The City of Clayton uses an enterprise fund to account for its Endeavor Hall activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Clayton various functions. City of Clayton uses three internal service funds to account for its capital equipment replacement program, self-insurance activities, and extraordinary employer pension contribution fluctuations. Because these services predominantly benefit governmental rather that business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The City’s sole enterprise fund is considered to be a major fund. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements.

Fiduciary Funds

The City is the fiscal agent for benefit assessment districts and other parties holding amounts collected which await payment as directed. The City’s fiduciary activities are reported in the separate statement of fiduciary net position and the agency funds statement of assets and liabilities. These activities are excluded from the City’s other financial statements because the City is acting as a trustee for these funds and cannot use these assets to finance its own operations. The City’s fiduciary funds include a private-purpose trust fund to account for the activities of the City of Clayton Redevelopment Successor Agency.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 55-101 of this report.

23

OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Other Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension and other post -employment benefits to its employees as well as budgetary information for the General Fund and each of the major governmental funds.

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS Analysis of Overall Net Position and Results of Operations

As noted previously, net position may serve over time as a useful indicator of a government's financial position. The City’s total net position was $45,759,874 at June 30, 2022, which is an increase of $392,782 from the prior year’s restated net position at June 30, 2021.

The largest portion of the City’s net position reflects its investment in capital assets (e. g. land, buildings, etc. ) net of any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens and these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The following is condensed comparative Statements of Net Position for the fiscal years ended June 30, 2022 and June 30, 2021:

Business-

Business-

Governmental

Governmental

Type

Type

Activities

Activities

Activities

Activities

Total

Total

Assets

2022

2021

2022

2021

2022

2021

Current Assets

$

14,773,722

$

14,812,813

$

(120,893)

$

(112,174)

$

14,652,829

$

14,700,639

Noncurrent Assets

6,482,003

6,462,021

-

-

6,482,003

6,462,021

Capital Assets

29,116,205

28,793,685

1,009,203

1,038,076

30,125,408

29,831,761

Total Assets

50,371,930

50,068,519

888,310

925,902

51,260,240

50,994,421

Deferred outflows

1,285,641

1,051,589

-

-

1,285,641

1,051,589

Liabilities

Current Liabilities

640,113

362,937

8,171

1,916

648,284

364,853

Noncurrent Liabilities

3,666,339

5,944,104

-

-

3,666,339

5,944,104

Total Liabilities

4,306,452

6,307,041

8,171

1,916

4,314,623

6,308,957

Deferred inflows

2,471,384

369,961

-

-

2,471,384

369,961

Net Position

Net investment in

capital assets

29,116,205

28,793,685

1,009,203

1,038,076

30,125,408

29,831,761

Restricted

9,890,048

13,156,670

-

-

9,890,048

13,156,670

Unrestricted

5,873,482

2,492,751

(129,064)

(114,090)

5,744,418

2,378,661

Total net position

$

44,879,735

$

44,443,106

$

880,139

$

923,986

$

45,759,874

$

45,367,092

24

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Overall Net Position and Results of Operations, Continued

Of the City’s total net position, $9,890,048 (21.6%) represents resources that are subject to external restrictions on how they may be used. The balance of the unrestricted net position of $5,744,418 (12.6%) may be used to meet the City's ongoing obligations to citizens and creditors. City revenues for the year, including both governmental and business-type activities, were $9,359,704, while expenses totaled $9,021,834, resulting in a net increase in net position of $337,870 excluding transfers, extraordinary and special items. This net increase was primarily attributable to a increase in net position of governmental activities, which is discussed in greater detail in the following section.

The following is a recap of the City’s Statement of Activities and Changes in Net Position for the fiscal years ended June 30, 2022 and June 30, 2021:

Business-

Business-

Governmental

Governmental

Type

Type

Activities

Activities

Activities

Activities

Total

Total

Revenues:

2022

2021

2022

2021

2022

2021

Program revenues:

Charges for Services

$

1,002,338

$

961,910

$

16,847

$

(1,442)

$

1,019,185

$

960,468

Operating grants and contributions

2,755,382

893,718

-

-

2,755,382

893,718

Capital grants and contributions

120,774

42,363

-

-

120,774

42,363

Total program revenues

3,878,494

1,897,991

16,847

(1,442)

3,895,341

1,896,549

General revenues:

Property taxes

2,846,766

2,722,906

-

-

2,846,766

2,722,906

Special parcel taxes

1,348,657

1,309,373

-

-

1,348,657

1,309,373

Sales and use taxes

563,908

510,029

-

-

563,908

510,029

Business license taxes

162,881

90,872

-

-

162,881

90,872

Franchise fees

587,740

567,350

-

-

587,740

567,350

Payments in lieu of taxes

174,443

171,029

-

-

174,443

171,029

Investment income

(281,502)

508,256

(379)

(281,502)

507,877

Miscellaneous

54,512

38,972

-

-

54,512

38,972

Gain (loss) on sale of assets

6,958

1,741

-

-

6,958

1,741

Total general revenues

5,464,363

5,920,528

(379)

5,464,363

5,920,149

Total revenues

9,342,857

7,818,519

16,847

(1,821)

9,359,704

7,816,698

Expenses:

General government

2,629,048

1,796,454

-

-

2,629,048

1,796,454

Public works

2,509,096

2,909,710

-

-

2,509,096

2,909,710

Public safety

2,736,817

2,980,000

-

-

2,736,817

2,980,000

Community and economic

development

356,450

357,133

-

-

356,450

357,133

Parks and recreation services

729,729

592,433

-

-

729,729

592,433

Endeavor Hall

-

-

60,694

73,117

60,694

73,117

Total expenses

8,961,140

8,635,730

60,694

73,117

9,021,834

8,708,847

Change in Net Position

381,717

(817,211)

(43,847)

(74,938)

337,870

(892,149)

Net Position – Beginning, restated

44,498,018

45,260,317

923,986

998,924

45,422,004

46,259,241

Net Position – ending

$

44,879,735

$

44,443,106

$

880,139

$

923,986

$

45,759,874

$

45,367,092

25

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Governmental Activities

The increase in net position of the governmental activities over the prior year was primarily attributable to a increase in both operating and capital grants and contributions. Total expenses were $8,961,140 in the current year compared to $8,635,730 in the prior year. The following chart depicts the relative size of expenses by function for the fiscal years ending June 30, 2022 and 2021:

Government Activities

Expenses by Function

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

-

General

Government

Public Safety

Public Works Community Parks and

and Economic Recreation

Development Services

Fiscal Year 2021

Fiscal Year 2022

Total program revenues from governmental activities were $ 3,878,494 in the current year compared to $1,897,991 in the prior year. Program revenues are derived directly from the program itself or from parties outside the reporting government's taxpayers or citizenry. They reduce the net cost of the function to be financed from government's general revenues. Of the governmental program revenues, 25.8% were derived from charges for services, which includes park use fees, rental fees, licenses and permits, planning services fees, engineering plan check fees, police service fees, and other revenues. The remaining 74.2% of the governmental program revenues came from operating and capital grants and contributions. General revenues are all other revenues not categorized as program revenues such as property taxes, special parcel taxes, sales and use taxes, motor vehicle fees, investment earnings, franchise fees, use of money and property, service charges, and miscellaneous revenues.

26

F INANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Governmental Activities, Continued

Total general revenues from governmental activities decreased by $456,165 (7.7%) over the prior year. The following pie charts depict the relative size of governmental activities program and general revenues by source for the fiscal years ending June 30, 2022 and 2021:

Governmental Activities

Revenues by Source

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$-

$(1,000,000)

Fiscal Year 2021

Fiscal Year 2022

Analysis of Business-Type Activities

Total business-type expenses decreased 20.4% from $73,117 in the prior year to $60,694 in the current year. This decrease is largely attributable to the decrease in general and administrative costs of the Endeavor Hall rental facility. Total services revenue increased significantly from $-1,442 in the prior year to $16,847 in the current year due to the increase in rental activity. Net position of business -type activities declined $43,847 to a total of $ 880,139 at June 30, 2022 due to charges for services being insufficient to cover the annual depreciation expense and general operating expenses of underlying Endeavor Hall rental facility assets.

27

FINANCIAL ANALYSIS OF INDIVIDUAL FUND STATEMENTS Analysis of Governmental Funds

The focus of the City of Clayton's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Clayton's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $17,172,907. Of this amount, $5,744,867 (33.5%) is unassigned; $173,471(1.0%) is in non-spendable form; $3,330,153 (19.4%) is assigned for specific purposes; $6,719,595 (39.1%) is restricted by law, regulation, or other outside contractual agreements; and $1,204,821 (7.0%) is committed for specific expenditures in the future.

General Fund

The City’s General Fund reported an increase in fund balance of $249,464 (4.0%) in the current fiscal year. This modest increase is mostly attributable to increase in property taxes, special parcel taxes and assessments, and a corresponding decrease in investment earnings (primarily due to market rate adjustments). Total fund balance of the General Fund is $6,413,357 as of June 30, 2022, of which $5,744,867 (89.6%) is reported as unassigned and available for appropriation. This unassigned fund balance is .92 times the size of the General Fund’s adopted operating budget for the upcoming fiscal year ending June 30, 2022.

Below is a summary of the General Fund expenditures by department.

Pandemic

Rainy

Recovery

General government

General Fund

Day Fund

Reserve

Total

$

1,447,700

$

26,000

$

1,096,717

$

2,570,417

Public safety

2,684,319

-

-

2,684,319

Public works

333,423

-

-

333,423

Community and

economic development

299,175

-

-

299,175

Parks and recreation

services

336,592

-

-

336,592

Capital outlay

22,168

-

-

22,168

Total expenditures

$

5,123,377

$

26,000

$

1,096,717

$

6,246,094

Landscape Maintenance District

Community Facilities District No. 2007-1, referred to as the Landscape Maintenance District special revenue fund, reported a decrease in fund balance of $447,353 (41.2%) in the current fiscal year. This decrease in fund balance is largely attributable to increases in operating costs such as water service and weed abatement, as well as a increase in project costs/capital outlay costs. Total fund balance of the Landscape Maintenance District is $ 638,533 as of June 30, 2022, of which $ 32,509 is reported as assigned or restricted for the following year’s operating budget, and the remaining fund balance is assigned.

28

FINANCIAL ANALYSIS OF INDIVIDUAL FUND STATEMENTS, Continued Analysis of Governmental Funds, Continued

Successor Housing Agency

The Successor Housing Agency special revenue fund reported a increase in fund balance of $187,452 (3.4%) in the current fiscal year. This increase in fund balance resulted primarily from unspent program revenue on housing loan repayments as well as unrealized gains on the inventory of affordable income housing. Total fund balance of the Successor Housing Agency is $5,617,695 as of June 30, 2022, which is classified entirely as restricted.

Capital Improvement Program

The Capital Improvement Program capital projects fund reported an increase in fund balance of $681,698 (35.4%) in the current fiscal year. This increase in fund balance primarily arose from timing differences between project execution and funding. Total fund balance of the Capital Improvement Program fund is $2,606,444 and is reported entirely as assigned for capital projects as of June 30, 2022.

Analysis of Proprietary Funds

The City of Clayton's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The net position of the City’s only major enterprise fund, Endeavor Hall, at the end of the year was $880,139, and total net position for the internal service funds amounted to $1,000,736.

GENERAL FUND BUDGETARY HIGHLIGHTS

General Fund actual revenues and transfers fall short of total revenues and transfers of the final and adopted budget by $39,744. The variance is due to a combination of factors including an increase in taxes and assessment and a decrease in the investment reported at year-end based on the market rate. The unrealized investment loss was reported as a direct result of the City’s investment portfolio being largely made up of fixed instrument securities during a time of declining interest rates. As noted in recent quarterly investment portfolio reports presented to the City Council, the City’s investment policy is designed to reduce volatility and generate consistent returns in the long run-in order to protect public funds. Actual property tax revenues exceeded somewhat conservative adopted budgetary growth projections by $186,163 (6.9%), which was largely offset by lower-than-expected revenue from permits, licenses and fees and sales tax receipts.

29

GENERAL FUND BUDGETARY HIGHLIGHTS, Continued

Actual General Fund expenditures of $6,246,094 were more than the final adjusted budget by $1,447,307 for the year ended June 30, 2022. The negative variance is a result of actual expenditures being more than budgeted in General government due to investments in the capital expenditures for the fiscal year ended June 30, 2022.

CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets

The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2022 amounted to $30,125,408 (net of accumulated depreciation). This investment in capital assets includes land, building, improvements, machinery and equipment, park facilities, corporate yard building, and roads. Total depreciation expense on governmental assets totaled $1,048,171, versus $1,080,713 in the prior year. The slight decrease in depreciation is attributable to the completion of significant capital projects during the prior and current fiscal years and capital assets reaching their estimated useful lives. Additional information on the City of Clayton's capital assets can be found in Note 6 of this report.

Debt Administration

The remaining debt of the former Clayton Redevelopment Agency (RDA) of $ 5,835,000 was transferred to the Successor Agency on February 1, 2012 (fiscal year ending June 30, 2012) . The City has no outstanding general obligation debt. The Successor Agency has maintained its "AAA" credit rating (S&P) on outstanding Tax Allocation Bonds. Additional information on the Successor Agency's long-term debt can be found in Note 13 of this report.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

As the City of Clayton is largely a residential community the annual General Fund operating budget relies heavily on property taxes to finance annual operating appropriations rather than other sources of revenue larger and more commercially and industrial developed municipalities have access to (i. e. sales and transient occupancy taxes). The City strives to meet the ever evolving needs of local residents and businesses within the constraints of limited and sometimes restrictive revenue sources.

There was an increase in adopted General Fund operating appropriations when compared to the actuals reported as of June 30, 2022, for the upcoming fiscal year ending June 30, 2023 of $641,365 (10.2%) . The increase in appropriations is attributable primarily to labor wage and benefit costs of various City departments and capital improvement costs included as part of the general government. The annual June 2021 to June 2022 consumer price index inflationary factor is 6.8% as published by the U. S. Bureau of Labor and Statistics for the San Francisco-Oakland-Hayward region. In addition, there are projected decreases in the annual CalPERS unfunded accrued liabilities and normal costs, primarily due to Classic Tier employees retiring and new employees being hired in the PEPRA tier. The adopted budget for the fiscal year ending June 30, 2023 projects total General Fund revenues of $6,887,459 an increase of approximately

30

City of Clayton

Management’s Discussion and Analysis

For the year ended June 30, 2022

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET, Continued

$34,920 over the prior year actual. The projected revenue growth reflects continued growth in property tax and sales and use taxes supported by actual results reported in the fiscal year ending June 30, 2022.

REQUEST FOR INFORMATION

This financial report is designed to provide a general overview of the City of Clayton's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report, or requests for additional financial information, should be addressed to the Office of the Finance Manager, 6000 Heritage Trail, Clayton, California 94517.

31

GOVERNMENT-WIDE

FINANCIAL STATEMENTS

32

City of Clayton

Government-Wide

Statement of Net Position

June 30, 2022

Governmental

Business-Type

ASSETS

Activities

Activites

Total

Current Assets:

Cash and investments

$

13,441,679

$

-

$

13,441,679

Accounts receivable (net of allowances)

1,133,315

-

1,133,315

Interest receivable

25,257

-

25,257

Internal balances

120,893

(120,893)

-

Prepaid expenses

52,578

-

52,578

Total Current Assets

14,773,722

(120,893)

14,652,829

Noncurrent Assets:

Investment in affordable housing

3,170,453

-

3,170,453

Notes receivable

3,311,550

-

3,311,550

Nondepreciable assets

3,133,754

167,738

3,301,492

Depreciable assets, net

25,982,451

841,465

26,823,916

Total Noncurrent Assets

35,598,208

1,009,203

36,607,411

Total Assets

50,371,930

888,310

51,260,240

DEFERRED OUTFLOWS OF RESOURCES

Deferred outflows related to pension

1,285,641

-

1,285,641

Deferred outflows related to OPEB

-

-

-

Total Deferred Outflows of Resources

1,285,641

-

1,285,641

LIABILITIES

Current Liabilites:

Accounts payable

149,907

2,671

152,578

Deposits payable

-

5,500

5,500

Accrued payroll

37

-

37

Unearned revenue

332,166

-

332,166

Compensated absences payable

83,645

-

83,645

Other liabilities

74,358

-

74,358

Total Current Liabilities

640,113

8,171

648,284

Noncurrent Liabilites:

Compensated absences payable

83,645

-

83,645

Net OPEB liability

578,315

-

578,315

Net pension liability

2,759,739

-

2,759,739

Lease payable

244,640

-

244,640

Total Noncurrent Liabilities

3,666,339

-

3,666,339

Total Liabilities

4,306,452

8,171

4,314,623

DEFERRED INFLOWS OF RESOURCES

Deferred inflows related to pension

2,471,384

-

2,471,384

Deferred inflows related to OPEB

-

-

-

Total Deferred Inflows of Resources

2,471,384

-

2,471,384

NET POSITION

Net investment in capital assets

29,116,205

1,009,203

30,125,408

Restricted for special projects and programs

9,890,048

-

9,890,048

Unrestricted

5,873,482

(129,064)

5,744,418

Total Net Position

$

44,879,735

$

880,139

$

45,759,874

The accompanying notes are an integral part of the financial statements

33

City of Clayton

Government-Wide

Statement of Activities and Changes in Net Position

For the year ended June 30, 2022

Operating

Capital

Charges

Grants and

Grants and

Governmental Business-type

Functions/Programs

Expenses

for Services

Contributions

Contributions

Activities

Activities

Total

Primary Government:

Governmental Activities

General government

$

2,629,048

$

437,626

$

13,808

$

-

$

(2,177,614)

$

-

$

(2,177,614)

Public safety

2,736,817

48,292

397,461

-

(2,291,064)

-

(2,291,064)

Public works

2,509,096

331,218

2,344,113

44,634

210,869

-

210,869

Community and economic development

356,450

142,299

-

76,140

(138,011)

-

(138,011)

Parks and recreation services

729,729

42,903

-

-

(686,826)

-

(686,826)

Total Governmental Activities

8,961,140

1,002,338

2,755,382

120,774

(5,082,646)

-

(5,082,646)

Business-Type Activities

(43,847)

(43,847)

Endeavor Hall

60,694

16,847

-

-

-

Total Business-Type Activities

60,694

16,847

-

-

-

(43,847)

(43,847)

Total Primary Government

$

9,021,834

$

1,019,185

$

2,755,382

$

120,774

(5,082,646)

(43,847)

(5,126,493)

General revenues:

Taxes:

Property taxes

2,846,766

-

2,846,766

Special parcel taxes

1,348,657

-

1,348,657

Sales and use taxes

563,908

-

563,908

Business license taxes

162,881

-

162,881

Total Taxes

4,922,212

-

4,922,212

Franchise fees

587,740

-

587,740

Payments in lieu of taxes

174,443

-

174,443

Investment income (loss)

(281,502)

-

(281,502)

Other miscellaneous general revenues

54,512

-

54,512

Gain (loss) on disposal of fixed assets

6,958

-

6,958

Total general revenues and transfers

5,464,363

-

5,464,363

Change in net position

381,717

(43,847)

337,870

Net position - beginning, as restated

44,498,018

923,986

45,422,004

Net position - ending

$

44,879,735

$

880,139

$

45,759,874

The accompanying notes are an integral part of the financial statements

34

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35

FUND FINANCIAL STATEMENTS

36

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37

GOVERNMENTAL FUNDS

Governmental Funds are used to account for activities primarily supported by taxes, grants, and similar revenue sources. All governmental funds can be classified into one of five fund types: the General Fund, special revenue funds, debt service funds, capital projects funds, and permanent funds.

General Fund:

The General Fund is the main operating fund of the City and is presented as a major fund. It is used to account for all financial resources except those required to be accounted for in another fund.

Special Revenue Funds:

Special revenue funds account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The following are reported as major special revenue funds:

Landscape Maintenance District - Community Facilities District (CFD) No. 2007-1, referred to as the Landscape Maintenance District special revenue fund, accounts for real property voter-approved special parcel taxes collected to maintain arterial landscaping and open space within the City (CFD No. 2007-1 sunsets in 2027).

Successor Housing Agency - Accounts for the activities related to the assets assumed by the City of Clayton as the Housing Successor to the housing activities of the former Redevelopment Agency of the City of Clayton.

American Rescue Plan Act – Accounts for the activities related to the grant funding received from the American Rescue Plan Act.

Capital Projects Funds:

Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds. The following is the City’s sole major capital projects fund:

Capital Improvement Program - Accounts for the projects identified in the capital improvement program funded by various federal and state grants as well as through transfers from the General Fund.

Non-major Governmental Funds:

All non-major governmental funds of the City are aggregated and presented on the face of the basic financial statements in one column.

38

City of Clayton

Governmental Funds

Balance Sheet

June 30, 2022

Special Revenue

Landscape

Maintenance

Successor

General Fund

District

Housing Agency

ASSETS

Cash and investments

$

5,985,880

$

693,391

$

1,857,892

Accounts receivable

646,294

-

-

Interest receivable

25,257

-

-

Investment in affordable housing

-

-

3,170,453

Notes receivable

-

-

3,311,550

Prepaid items

52,578

-

-

Due from other funds

120,893

-

-

Advance to other funds

-

-

-

Total Assets

$

693,391

$

6,830,902

$

8,339,895

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:

Accounts payable

$

1,826

$

54,858

$

-

Other payables

71,658

-

-

Accrued payroll

37

-

-

Compensated absences

83,645

-

-

Unearned revenue

-

-

-

Total Liabilities

157,166

54,858

-

Deferred Inflows of Resources:

Deferred revenue

260,379

-

2,722,200

Total Deferred Inflows of Resources

-

260,379

2,722,200

Fund Balance:

Non-spendable

173,471

-

-

Restricted

-

32,509

5,617,695

Committed

495,019

-

-

Assigned

-

606,024

-

Unassigned

5,744,867

-

-

Total Fund Balance

638,533

6,413,357

5,617,695

Total Liabilities, Deferred Inflows

$

6,830,902

$

693,391

$

8,339,895

of Resources and Fund Balances

The accompanying notes are an integral part of the financial statements

39

City of Clayton

Governmental Funds

Balance Sheet

June 30, 2022

Capital Project

Capital

Other

American

Improvement

Governmental

Rescue Plan Act

Program

Funds

Total

$

-

$

2,674,360

$

1,769,715

$

12,981,238

-

-

487,021

1,133,315

-

-

-

25,257

-

-

-

3,170,453

-

-

-

3,311,550

-

-

-

52,578

-

-

-

120,893

-

-

-

-

$

-

$

2,674,360

$

2,256,736

$

20,795,284

$

-

$

67,916

$

24,992

$

149,592

-

-

2,700

74,358

-

-

-

37

-

-

-

83,645

-

-

332,166

332,166

-

67,916

359,858

639,798

-

-

-

2,982,579

-

-

-

2,982,579

-

-

-

173,471

-

-

1,069,391

6,719,595

-

-

709,802

1,204,821

-

2,606,444

117,685

3,330,153

-

-

-

5,744,867

-

2,606,444

1,896,878

17,172,907

$

-

$

2,674,360

$

2,256,736

$

20,795,284

The accompanying notes are an integral part of the financial statements

40

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41

City of Clayton

Reconciliation of Governmental Funds Balance Sheet to the

Statement of Net Position

June 30, 2022

Total Fund Balances - Governmental Funds

$

17,172,907

Amounts reported for governmental activities in the Statement of Net Position are different because:

CAPITAL ASSETS

Capital assets used in governmental activities are not current financial resources and therefore are

not reported in the Governmental Funds Balance Sheet.

Non-depreciable capital assets

3,133,754

Depreciable capital assets (net of internal service fund assets of $493,547)

25,441,841

ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES

Unavailable revenue which are deferred inflows of resources in the Governmental Funds because

they are not available currently, but are taken into revenue in the statement of activities.

2,982,579

LONG-TERM ASSETS AND LIABILITIES

Long-term liabilities are not due and payable in the current period and therefore are not reported

in the Governmental Funds Balance Sheet.

Net OPEB liability not reported on the Governmental Funds Balance Sheet

(578,315)

Compensated absences payable

(83,645)

Net pension liability not reported on the Governmental Funds Balance Sheet

(2,759,739)

Lease liability not reported on the Governmental Funds Balance Sheet

(244,640)

DEFERRED INFLOWS AND OUTFLOWS

Deferred inflows/(outflows) of resources for not reported on the Governmental Funds Balance

Sheet

Deferred outflows of resources for net pension liability

1,285,641

Deferred inflows of resources for net pension liability

(2,471,384)

Deferred outflows of resources for net OPEB liability

-

Deferred inflows of resources for net OPEB liability

-

ALLOCATION OF INTERNAL SERVICE FUND NET POSITION

Internal service funds are used by management to charge the costs of certain activities to

individual funds. The assets and liabilities of the internal service funds are included in the

governmental activities in the Government-wide Statement of Net Position.

1,000,736

Net Position of Governmental Activities

$

44,879,735

The accompanying notes are an integral part of the financial statements

42

City of Clayton

Governmental Funds

Statement of Revenues, Expenditures and Changes in Fund Balance

For the year ended June 30, 2022

Special Revenue

Landscape

Successor

Maintenance

Housing

General Fund

District

Agency

REVENUES

Property taxes

$

2,846,766

$

-

$

-

Program income

-

-

111,400

Special parcel taxes and assessments

-

1,204,882

-

Sales and use taxes

563,908

-

-

Business licenses

162,881

-

-

Permits, licenses and fees

114,026

-

-

Fines, forfeitures and penalties

151,409

-

-

Intergovernmental

135,233

-

-

Motor vehicle in-lieu fees

-

-

-

Other in-lieu fees

174,443

-

-

Franchise fees

587,740

-

-

Service charges

305,645

-

-

Use of money and property

(185,018)

(24,383)

17,961

Other revenue

40,844

-

-

Total Revenues

4,897,877

1,180,499

129,361

EXPENDITURES

Current:

General government

2,570,417

-

-

Public safety

2,684,319

-

-

Public works

333,423

1,424,676

-

Community and economic development

299,175

-

-

Parks and recreation services

336,592

-

-

Capital outlay

22,168

161,367

-

Total Expenditures

6,246,094

1,586,043

-

Excess (Deficiency) of Revenues

(1,348,217)

(405,544)

129,361

Over (Under) Expenditures

OTHER FINANCING SOURCES (USES)

Unrealized gains (losses)

-

-

58,091

Transfers in

1,597,681

-

-

Transfers out

-

(41,809)

-

Total Other Financing Sources (Uses)

1,597,681

(41,809)

58,091

Net Change in Fund Balances

249,464

(447,353)

187,452

FUND BALANCES

Beginning of year, restated

6,163,893

1,085,886

5,430,243

End of fiscal year

$

6,413,357

$

638,533

$

5,617,695

The accompanying notes are an integral part of the financial statements

43

City of Clayton

Governmental Funds

Statement of Revenues, Expenditures and Changes in Fund Balance

For the year ended June 30, 2022

Capital Project

Other

Capital

American

Improvement

Governmental

Rescue Plan Act

Program

Funds

Total

$

-

$

-

$

-

$

2,846,766

-

-

-

111,400

-

-

442,230

1,647,112

-

-

-

563,908

-

-

-

162,881

-

-

140,326

254,352

-

-

-

151,409

1,467,024

-

1,170,041

2,772,298

-

-

-

-

-

-

-

174,443

-

-

-

587,740

-

-

-

305,645

-

(80,986)

(52,490)

(324,916)

-

-

648

41,492

1,467,024

(80,986)

1,700,755

9,294,530

-

-

126,650

2,697,067

-

-

130,541

2,814,860

-

-

383,356

2,141,455

-

-

-

299,175

-

-

140,808

477,400

-

869,925

48,889

1,102,349

-

869,925

830,244

9,532,306

1,467,024

(950,911)

870,511

(237,776)

-

-

-

58,091

-

1,632,609

21,214

3,251,504

(1,467,024)

-

(1,742,671)

(3,251,504)

(1,467,024)

1,632,609

(1,721,457)

58,091

-

681,698

(850,946)

(179,685)

-

1,924,746

2,747,824

17,352,592

$

-

$

2,606,444

$

1,896,878

$

17,172,907

The accompanying notes are an integral part of the financial statements

44

City of Clayton

Reconciliation of Governmental Funds Statement of Revenues, Expenditures and Changes in Fund

Balances to the Statement of Activities and Changes in Net Position

For the year ended June 30, 2022

Net Change in Fund Balances - Total Governmental Funds

Amounts reported for governmental activities in the Statement of Activities are different because:

ACCRUAL OF NON-CURRENT ITEMS

The amounts below included in the Statement of Activities do not provide (or require) the use of current financial resources and therefore are not reported as revenue or expenditures in the Governmental Funds (net change).

Net change in post-employment benefits (OPEB) liability and deferred inflows (outflows) Long-term compensated absences payable

Net change in pension liability and deferred inflows (outflows).

Unavailable revenues

Net change in lease liability

CAPITAL ASSET TRANSACTIONS

Governmental Funds report capital outlays as expenditures. However in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.

Capital asset acquisition, excluding internal service fund asset acquisitions.

Depreciation expense is deducted from the fund balance (Net of internal service fund depreciation of $100,425).

ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY

Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net gain or loss of the internal service funds is reported with governmental activities.

Change in Net Position of Governmental Activities on Statement of Activities

$ (179,685)

(74,942)

(745)

730,720

(113,947)

(244,640)

1,217,507

(947,745)

(4,806)

$ 381,717

The accompanying notes are an integral part of the financial statements

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PROPRIETARY FUNDS

Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges. The City’s proprietary funds can be classified into two fund types: enterprise and internal service funds.

Enterprise Funds:

Enterprise funds are used to report any activity for which a fee is charged to external users for goods or services. The following is the City’s sole major enterprise fund:

Endeavor Hall – Accounts for all rental activities related to operation of the underlying rental facility asset. The primary use of the rental facility has been for wedding receptions and other formal special events.

Internal Service Funds:

The City’s internal service funds account for activities that provide goods or services to other City funds, departments, or agencies on a cost reimbursement basis. All internal service funds of the City are aggregated and presented on the face of the proprietary fund financial statements in one column.

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City of Clayton

Proprietary Funds

Statement of Net Position

June 30, 2022

Business-type

Governmental

Activities -

Activities -

Endeavor Hall

Internal Service

ASSETS

Current assets:

Cash and investments

$

-

$

460,441

Noncurrent assets

Land

167,738

-

Depreciable assets, net

841,465

540,610

Total Assets

1,009,203

1,001,051

LIABILITIES

Current liabilities:

Accounts payable

2,671

315

Other payables

-

-

Deposits payable

5,500

-

Due to other funds

120,893

-

Total Liabilities

129,064

315

NET POSITION

Net investment in capital assets

1,009,203

540,610

Unrestricted

(129,064)

460,126

Total Net Position

$

880,139

$

1,000,736

The accompanying notes are an integral part of the financial statements

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City of Clayton

Proprietary Funds

Statement of Revenues, Expenses and Changes in Net Position

For the year ended June 30, 2022

Governmental

Business-type

Activities -

Activities -

Internal Service

Endeavor Hall

Funds

OPERATING REVENUES

Charges for current services

$

16,847

$

111,900

Total Operating Revenues

16,847

111,900

OPERATING EXPENSES

Personnel

4,833

-

General and administrative

26,989

8,564

Depreciation and amortization

28,872

100,425

Total Operating Expenses

60,694

108,989

Operating Income (Loss)

(43,847)

2,911

NONOPERATING REVENUES (EXPENSES)

Gain (loss) on disposal of assets

-

6,958

Investment income

-

(14,675)

Total Nonoperating Revenues (Expenses)

-

(7,717)

Net (loss) Before Contributions and

(43,847)

(4,806)

Operating Transfers

Capital contributions

-

-

Transfers in / (out)

-

-

Change in Net Position

(43,847)

(4,806)

NET POSITION:

Beginning of fiscal year

923,986

1,005,542

End of fiscal year

$

880,139

$

1,000,736

The accompanying notes are an integral part of the financial statements

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City of Clayton

Proprietary Funds

Statement of Cash Flows

For the year ended June 30, 2022

Business-type

Governmental

Activities -

Activities -

Internal Service

CASH FLOWS FROM OPERATING ACTIVITIES:

Endeavor Hall

Funds

Receipts from customers

$

20,847

$

111,900

Payments to suppliers

(24,734)

(4,001)

Payments to employees

(4,833)

-

Claims paid

-

(4,428)

Net cash provided (used) by operating activities

(8,720)

103,471

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES:

Transfers in / (out)

8,720

-

Net cash provided by noncapital financing

8,720

-

activities

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES:

Acquisition of fixed assets

-

(153,184)

Proceeds from the sale of capital assets

-

6,958

Net cash provided (used) by capital and related

-

(146,226)

financing activities

CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received on investments

-

(14,675)

Net Cash provided by investing activities

-

(14,675)

Net increase (decrease) in cash and cash equivalents

-

(57,430)

CASH AND CASH EQUIVALENTS:

Beginning of fiscal year

-

517,871

End of fiscal year

$

-

$

460,441

RECONCILIATION OF OPERATING INCOME

(LOSS) TO NET CASH PROVIDED (USED) BY

OPERATING ACTIVITIES:

Operating income (loss)

$

(43,847)

$

2,911

Adjustments to reconcile operating income (loss)

to net cash provided (used) by operating activities:

Depreciation and amortization

28,872

100,425

Changes in current assets and liabilities:

Increase (decrease) in accounts payable

2,255

135

Increase (decrease) in deposits payable

4,000

-

Increase (decrease) in interfund payables

-

-

Net cash provided (used) by operating activities

$

(8,720)

$

103,471

The accompanying notes are an integral part of the financial statements

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FIDUCIARY FUNDS

Fiduciary funds report assets held in a trustee or agency capacity for others and therefore cannot be used to support the government’s own programs. The City’s fiduciary funds can be classified into two fund types: agency and private purpose trust funds.

Agency Funds:

Agency funds are custodial in nature (assets equal liabilities) and do not involve measurements of results of operations. They are used to account for assets held in an agency capacity for others and therefore cannot be used to support the City's program. Agency funds are accounted for using the economic resources measurement focus and the accrual basis of accounting.

Private Purpose Trust Funds

Private purpose trust funds account for resources held by the City as trustee for third party beneficiaries, and are used to report both the Fiduciary Net Position and Changes in Fiduciary Net Position for the Successor Agency for the former Redevelopment Agency. Private Purpose Trust Funds are accounted for under the full accrual basis of accounting.

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City of Clayton

Fiduciary Funds

Statement of Fiduciary Net Position

June 30, 2022

Private Purpose

Trust Fund

Redevelopment

Successor

Agency

Agency Funds

ASSETS

Cash and investments

$

526,807

$

1,632,920

Cash and investments with fiscal agents

1

376,103

Accounts receivable

-

10,188

Other assets

-

967

Assessments receivable

-

655,931

Due from bondholders

-

182,883

Notes receivable

52,607

-

Investment in bonds

-

470,000

Total Assets

579,415

3,328,992

LIABILITIES

Accounts payable

-

16,378

Other liabilities

-

1,455,651

Deposits payable

-

774,539

Accrued interest payable

10,973

-

Advance from Successor Housing Agency

-

-

Notes payable

-

52,606

Bonds payable

1,145,000

1,029,818

Total Liabilities

1,155,973

$

3,328,992

DEFERRED INFLOWS OF RESOURCES

-

Deferred notes receivables

Total Deferred Inflows of Resources

-

NET POSITION

(576,558)

Held in trust for others

Total Net Position

$

(576,558)

The accompanying notes are an integral part of the financial statements

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City of Clayton

Fiduciary Funds

Statement of Changes in Fiduciary Net Position

For the year ended June 30, 2022

Private Purpose

Trust Fund

Redevelopment

Successor

ADDITIONS

Agency

Tax increment revenue

$

618,554

Program revenue

2,121

Investment gain (loss)

(15,186)

Total Additions

605,489

DEDUCTIONS

Interest expense

24,141

Administrative costs

252,179

Other expenses

-

Total Deductions

276,320

Changes in Net Position

329,169

NET POSITION

Beginning of Year

End of Year

(905,727)

$ (576,558)

The accompanying notes are an integral part of the financial statements

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FINANCIAL SECTION

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INDEPENDENT AUDITORS’

REPORT

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INDEPENDENT AUDITOR’S REPORT

To the City Council

City of Clayton, California

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clayton, Clayton, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Clayton’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clayton, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Clayton and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Clayton’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting

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from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards , we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Clayton’s internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Clayton’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, pension plan funding status, other postemployment benefits plan funding status, and budgetary comparison information on pages 21-31 and 103-111 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Clayton’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and

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MANAGEMENT’S DISCUSSION AND ANALYSIS

20

Management of the City of Clayton (the "City") provides this Management’s Discussion and Analysis of the City's Basic Financial Statements for readers of the City's financial statements. This narrative overview and analysis of the financial activities of the City is for its fiscal year ended June 30, 2022. We encourage readers to consider this information in conjunction with the additional information that is furnished with the City's financial statements, which follow.

FINANCIAL HIGHLIGHTS - PRIMARY GOVERNMENT Government -Wide Highlights

Net Position - The assets of the City of Clayton exceeded its liabilities at the close of the year ended June 30, 2022, by $45,759,874. Of this amount, $5,744,418 was reported as "unrestricted net position" and may be used to meet the ongoing obligations to citizens and creditors.

Changes in Net Position - The City's total net position increased by $337,870 in the fiscal year ending June 30, 2022. Net position of governmental activities increased by $381,717, while net position of business-type activities decreased by $43,847.

Major Fund Highlights

Governmental Funds – As of the year ended June 30, 2022, the City's governmental funds reported a combined ending fund balance of $17,172,907. Of this amount $5,744,867 represents "unassigned fund balances" available for appropriation.

General Fund - The unassigned fund balance of the General Fund on June 30, 2022 was $5,744,867, while the non-spendable and committed fund balances were $173,471 and $495,019 respectively.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the City of Clayton's basic financial statements. The City of Clayton's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains required supplementary information and supplemental information in addition to the basic financial statements themselves.

Government-wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the City of Clayton's finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the City of Clayton's assets and liabilities, with the difference between the two reported as net position . Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Clayton is improving or deteriorating.

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OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Government-wide Financial Statements, Continued

The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows . Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e. g. uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City of Clayton that are principally supported by taxes and intergovernmental revenues ( governmental activities ) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities ). The governmental activities of the City of Clayton include general government, public safety, public works, community and economic development, and parks and recreation services. The business-type activities of the City of Clayton include the activities of the Endeavor Hall enterprise fund.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Clayton, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Clayton can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources , as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long- term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities .

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OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Fund Financial Statements, Continued

The City of Clayton maintains fifteen individual governmental funds. Information is presented separately in the government funds balance sheet and governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, Landscape Maintenance District, Housing Successor Agency, and Capital Improvement Program, all of which are reported as major funds.

Proprietary Funds

The City of Clayton maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government- wide financial statements. The City of Clayton uses an enterprise fund to account for its Endeavor Hall activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Clayton various functions. City of Clayton uses three internal service funds to account for its capital equipment replacement program, self-insurance activities, and extraordinary employer pension contribution fluctuations. Because these services predominantly benefit governmental rather that business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The City’s sole enterprise fund is considered to be a major fund. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements.

Fiduciary Funds

The City is the fiscal agent for benefit assessment districts and other parties holding amounts collected which await payment as directed. The City’s fiduciary activities are reported in the separate statement of fiduciary net position and the agency funds statement of assets and liabilities. These activities are excluded from the City’s other financial statements because the City is acting as a trustee for these funds and cannot use these assets to finance its own operations. The City’s fiduciary funds include a private-purpose trust fund to account for the activities of the City of Clayton Redevelopment Successor Agency.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 55-101 of this report.

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OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Other Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension and other post -employment benefits to its employees as well as budgetary information for the General Fund and each of the major governmental funds.

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS Analysis of Overall Net Position and Results of Operations

As noted previously, net position may serve over time as a useful indicator of a government's financial position. The City’s total net position was $45,759,874 at June 30, 2022, which is an increase of $392,782 from the prior year’s restated net position at June 30, 2021.

The largest portion of the City’s net position reflects its investment in capital assets (e. g. land, buildings, etc. ) net of any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens and these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The following is condensed comparative Statements of Net Position for the fiscal years ended June 30, 2022 and June 30, 2021:

Business-

Business-

Governmental

Governmental

Type

Type

Activities

Activities

Activities

Activities

Total

Total

Assets

2022

2021

2022

2021

2022

2021

Current Assets

$

14,773,722

$

14,812,813

$

(120,893)

$

(112,174)

$

14,652,829

$

14,700,639

Noncurrent Assets

6,482,003

6,462,021

-

-

6,482,003

6,462,021

Capital Assets

29,116,205

28,793,685

1,009,203

1,038,076

30,125,408

29,831,761

Total Assets

50,371,930

50,068,519

888,310

925,902

51,260,240

50,994,421

Deferred outflows

1,285,641

1,051,589

-

-

1,285,641

1,051,589

Liabilities

Current Liabilities

640,113

362,937

8,171

1,916

648,284

364,853

Noncurrent Liabilities

3,666,339

5,944,104

-

-

3,666,339

5,944,104

Total Liabilities

4,306,452

6,307,041

8,171

1,916

4,314,623

6,308,957

Deferred inflows

2,471,384

369,961

-

-

2,471,384

369,961

Net Position

Net investment in

capital assets

29,116,205

28,793,685

1,009,203

1,038,076

30,125,408

29,831,761

Restricted

9,890,048

13,156,670

-

-

9,890,048

13,156,670

Unrestricted

5,873,482

2,492,751

(129,064)

(114,090)

5,744,418

2,378,661

Total net position

$

44,879,735

$

44,443,106

$

880,139

$

923,986

$

45,759,874

$

45,367,092

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FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Overall Net Position and Results of Operations, Continued

Of the City’s total net position, $9,890,048 (21.6%) represents resources that are subject to external restrictions on how they may be used. The balance of the unrestricted net position of $5,744,418 (12.6%) may be used to meet the City's ongoing obligations to citizens and creditors. City revenues for the year, including both governmental and business-type activities, were $9,359,704, while expenses totaled $9,021,834, resulting in a net increase in net position of $337,870 excluding transfers, extraordinary and special items. This net increase was primarily attributable to a increase in net position of governmental activities, which is discussed in greater detail in the following section.

The following is a recap of the City’s Statement of Activities and Changes in Net Position for the fiscal years ended June 30, 2022 and June 30, 2021:

Business-

Business-

Governmental

Governmental

Type

Type

Activities

Activities

Activities

Activities

Total

Total

Revenues:

2022

2021

2022

2021

2022

2021

Program revenues:

Charges for Services

$

1,002,338

$

961,910

$

16,847

$

(1,442)

$

1,019,185

$

960,468

Operating grants and contributions

2,755,382

893,718

-

-

2,755,382

893,718

Capital grants and contributions

120,774

42,363

-

-

120,774

42,363

Total program revenues

3,878,494

1,897,991

16,847

(1,442)

3,895,341

1,896,549

General revenues:

Property taxes

2,846,766

2,722,906

-

-

2,846,766

2,722,906

Special parcel taxes

1,348,657

1,309,373

-

-

1,348,657

1,309,373

Sales and use taxes

563,908

510,029

-

-

563,908

510,029

Business license taxes

162,881

90,872

-

-

162,881

90,872

Franchise fees

587,740

567,350

-

-

587,740

567,350

Payments in lieu of taxes

174,443

171,029

-

-

174,443

171,029

Investment income

(281,502)

508,256

(379)

(281,502)

507,877

Miscellaneous

54,512

38,972

-

-

54,512

38,972

Gain (loss) on sale of assets

6,958

1,741

-

-

6,958

1,741

Total general revenues

5,464,363

5,920,528

(379)

5,464,363

5,920,149

Total revenues

9,342,857

7,818,519

16,847

(1,821)

9,359,704

7,816,698

Expenses:

General government

2,629,048

1,796,454

-

-

2,629,048

1,796,454

Public works

2,509,096

2,909,710

-

-

2,509,096

2,909,710

Public safety

2,736,817

2,980,000

-

-

2,736,817

2,980,000

Community and economic

development

356,450

357,133

-

-

356,450

357,133

Parks and recreation services

729,729

592,433

-

-

729,729

592,433

Endeavor Hall

-

-

60,694

73,117

60,694

73,117

Total expenses

8,961,140

8,635,730

60,694

73,117

9,021,834

8,708,847

Change in Net Position

381,717

(817,211)

(43,847)

(74,938)

337,870

(892,149)

Net Position – Beginning, restated

44,498,018

45,260,317

923,986

998,924

45,422,004

46,259,241

Net Position – ending

$

44,879,735

$

44,443,106

$

880,139

$

923,986

$

45,759,874

$

45,367,092

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FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Governmental Activities

The increase in net position of the governmental activities over the prior year was primarily attributable to a increase in both operating and capital grants and contributions. Total expenses were $8,961,140 in the current year compared to $8,635,730 in the prior year. The following chart depicts the relative size of expenses by function for the fiscal years ending June 30, 2022 and 2021:

A graph of red and blue bars  Description automatically generated

Government Activities

Expenses by Function

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

-

General

Government

Public Safety

Public Works Community Parks and

and Economic Recreation

Development Services

Fiscal Year 2021

Fiscal Year 2022

Total program revenues from governmental activities were $ 3,878,494 in the current year compared to $1,897,991 in the prior year. Program revenues are derived directly from the program itself or from parties outside the reporting government's taxpayers or citizenry. They reduce the net cost of the function to be financed from government's general revenues. Of the governmental program revenues, 25.8% were derived from charges for services, which includes park use fees, rental fees, licenses and permits, planning services fees, engineering plan check fees, police service fees, and other revenues. The remaining 74.2% of the governmental program revenues came from operating and capital grants and contributions. General revenues are all other revenues not categorized as program revenues such as property taxes, special parcel taxes, sales and use taxes, motor vehicle fees, investment earnings, franchise fees, use of money and property, service charges, and miscellaneous revenues.

26

F INANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Governmental Activities, Continued

Total general revenues from governmental activities decreased by $456,165 (7.7%) over the prior year. The following pie charts depict the relative size of governmental activities program and general revenues by source for the fiscal years ending June 30, 2022 and 2021:

A graph with red and blue bars  Description automatically generated

Governmental Activities

Revenues by Source

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

$-

$(1,000,000)

Fiscal Year 2021

Fiscal Year 2022

Analysis of Business-Type Activities

Total business-type expenses decreased 20.4% from $73,117 in the prior year to $60,694 in the current year. This decrease is largely attributable to the decrease in general and administrative costs of the Endeavor Hall rental facility. Total services revenue increased significantly from $-1,442 in the prior year to $16,847 in the current year due to the increase in rental activity. Net position of business -type activities declined $43,847 to a total of $ 880,139 at June 30, 2022 due to charges for services being insufficient to cover the annual depreciation expense and general operating expenses of underlying Endeavor Hall rental facility assets.

27

FINANCIAL ANALYSIS OF INDIVIDUAL FUND STATEMENTS Analysis of Governmental Funds

The focus of the City of Clayton's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Clayton's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $17,172,907. Of this amount, $5,744,867 (33.5%) is unassigned; $173,471(1.0%) is in non-spendable form; $3,330,153 (19.4%) is assigned for specific purposes; $6,719,595 (39.1%) is restricted by law, regulation, or other outside contractual agreements; and $1,204,821 (7.0%) is committed for specific expenditures in the future.

General Fund

The City’s General Fund reported an increase in fund balance of $249,464 (4.0%) in the current fiscal year. This modest increase is mostly attributable to increase in property taxes, special parcel taxes and assessments, and a corresponding decrease in investment earnings (primarily due to market rate adjustments). Total fund balance of the General Fund is $6,413,357 as of June 30, 2022, of which $5,744,867 (89.6%) is reported as unassigned and available for appropriation. This unassigned fund balance is .92 times the size of the General Fund’s adopted operating budget for the upcoming fiscal year ending June 30, 2022.

Below is a summary of the General Fund expenditures by department.

Pandemic

Rainy

Recovery

General government

General Fund

Day Fund

Reserve

Total

$

1,447,700

$

26,000

$

1,096,717

$

2,570,417

Public safety

2,684,319

-

-

2,684,319

Public works

333,423

-

-

333,423

Community and

economic development

299,175

-

-

299,175

Parks and recreation

services

336,592

-

-

336,592

Capital outlay

22,168

-

-

22,168

Total expenditures

$

5,123,377

$

26,000

$

1,096,717

$

6,246,094

Landscape Maintenance District

Community Facilities District No. 2007-1, referred to as the Landscape Maintenance District special revenue fund, reported a decrease in fund balance of $447,353 (41.2%) in the current fiscal year. This decrease in fund balance is largely attributable to increases in operating costs such as water service and weed abatement, as well as a increase in project costs/capital outlay costs. Total fund balance of the Landscape Maintenance District is $ 638,533 as of June 30, 2022, of which $ 32,509 is reported as assigned or restricted for the following year’s operating budget, and the remaining fund balance is assigned.

28

FINANCIAL ANALYSIS OF INDIVIDUAL FUND STATEMENTS, Continued Analysis of Governmental Funds, Continued

Successor Housing Agency

The Successor Housing Agency special revenue fund reported a increase in fund balance of $187,452 (3.4%) in the current fiscal year. This increase in fund balance resulted primarily from unspent program revenue on housing loan repayments as well as unrealized gains on the inventory of affordable income housing. Total fund balance of the Successor Housing Agency is $5,617,695 as of June 30, 2022, which is classified entirely as restricted.

Capital Improvement Program

The Capital Improvement Program capital projects fund reported an increase in fund balance of $681,698 (35.4%) in the current fiscal year. This increase in fund balance primarily arose from timing differences between project execution and funding. Total fund balance of the Capital Improvement Program fund is $2,606,444 and is reported entirely as assigned for capital projects as of June 30, 2022.

Analysis of Proprietary Funds

The City of Clayton's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The net position of the City’s only major enterprise fund, Endeavor Hall, at the end of the year was $880,139, and total net position for the internal service funds amounted to $1,000,736.

GENERAL FUND BUDGETARY HIGHLIGHTS

General Fund actual revenues and transfers fall short of total revenues and transfers of the final and adopted budget by $39,744. The variance is due to a combination of factors including an increase in taxes and assessment and a decrease in the investment reported at year-end based on the market rate. The unrealized investment loss was reported as a direct result of the City’s investment portfolio being largely made up of fixed instrument securities during a time of declining interest rates. As noted in recent quarterly investment portfolio reports presented to the City Council, the City’s investment policy is designed to reduce volatility and generate consistent returns in the long run-in order to protect public funds. Actual property tax revenues exceeded somewhat conservative adopted budgetary growth projections by $186,163 (6.9%), which was largely offset by lower-than-expected revenue from permits, licenses and fees and sales tax receipts.

29

GENERAL FUND BUDGETARY HIGHLIGHTS, Continued

Actual General Fund expenditures of $6,246,094 were more than the final adjusted budget by $1,447,307 for the year ended June 30, 2022. The negative variance is a result of actual expenditures being more than budgeted in General government due to investments in the capital expenditures for the fiscal year ended June 30, 2022.

CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets

The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2022 amounted to $30,125,408 (net of accumulated depreciation). This investment in capital assets includes land, building, improvements, machinery and equipment, park facilities, corporate yard building, and roads. Total depreciation expense on governmental assets totaled $1,048,171, versus $1,080,713 in the prior year. The slight decrease in depreciation is attributable to the completion of significant capital projects during the prior and current fiscal years and capital assets reaching their estimated useful lives. Additional information on the City of Clayton's capital assets can be found in Note 6 of this report.

Debt Administration

The remaining debt of the former Clayton Redevelopment Agency (RDA) of $ 5,835,000 was transferred to the Successor Agency on February 1, 2012 (fiscal year ending June 30, 2012) . The City has no outstanding general obligation debt. The Successor Agency has maintained its "AAA" credit rating (S&P) on outstanding Tax Allocation Bonds. Additional information on the Successor Agency's long-term debt can be found in Note 13 of this report.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

As the City of Clayton is largely a residential community the annual General Fund operating budget relies heavily on property taxes to finance annual operating appropriations rather than other sources of revenue larger and more commercially and industrial developed municipalities have access to (i. e. sales and transient occupancy taxes). The City strives to meet the ever evolving needs of local residents and businesses within the constraints of limited and sometimes restrictive revenue sources.

There was an increase in adopted General Fund operating appropriations when compared to the actuals reported as of June 30, 2022, for the upcoming fiscal year ending June 30, 2023 of $641,365 (10.2%) . The increase in appropriations is attributable primarily to labor wage and benefit costs of various City departments and capital improvement costs included as part of the general government. The annual June 2021 to June 2022 consumer price index inflationary factor is 6.8% as published by the U. S. Bureau of Labor and Statistics for the San Francisco-Oakland-Hayward region. In addition, there are projected decreases in the annual CalPERS unfunded accrued liabilities and normal costs, primarily due to Classic Tier employees retiring and new employees being hired in the PEPRA tier. The adopted budget for the fiscal year ending June 30, 2023 projects total General Fund revenues of $6,887,459 an increase of approximately

30

City of Clayton

Management’s Discussion and Analysis

For the year ended June 30, 2022

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET, Continued

$34,920 over the prior year actual. The projected revenue growth reflects continued growth in property tax and sales and use taxes supported by actual results reported in the fiscal year ending June 30, 2022.

REQUEST FOR INFORMATION

This financial report is designed to provide a general overview of the City of Clayton's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report, or requests for additional financial information, should be addressed to the Office of the Finance Manager, 6000 Heritage Trail, Clayton, California 94517.

31

GOVERNMENT-WIDE

FINANCIAL STATEMENTS

32

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53

NOTES TO THE BASIC

FINANCIAL STATEMENTS

54

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The basic financial statements of the City of Clayton, California (City) have been prepared in conformity with generally accepted accounting principles (US GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.

Reporting Entity

The City of Clayton (City) is primarily a residential community nestled in the foothills of Mount Diablo in Contra Costa County, California. The City was incorporated on March 3, 1964 under the laws of the State of California, and encompasses approximately four square miles with a population of 11,700. The City operates under the Council-Manager form of government, with five elected Council members served by a full-time City Manager totaling a staff of twenty-six and a fifth (26.2) full-time equivalent employees providing the following services: public works, parks and recreation services, community and economic development, public safety, and general government. The City’s public safety program is served by an in-house police force of eleven (11) full-time sworn police officers supported by two (2) full-time administrative personnel.

The basic financial statements include the financial activities of the City, Successor Agency to the Clayton Redevelopment Agency (Successor Agency) and the Clayton Financing Authority (Authority).

The City is the primary government unit. Component units are those entities which are financially accountable to the primary government, either because the City appoints a voting majority of the component unit's board, or because the component unit will provide a financial benefit or impose a financial burden on the City. The Clayton Redevelopment Agency (“RDA”), which was dissolved as of February 1, 2012 was accounted for as a "blended" component unit of the City. Despite being legally separate, this entity was so intertwined with the City that it is, in substance, part of the City's operations. Accordingly, the balances and transactions of this component unit were reported within the funds of the City. Upon the dissolution of the RDA, the RDA ceased to be reported as a blended component unit and was replaced by the Successor Agency, which is reported as a private purpose trust fund in the fiduciary fund section of the financial statements.

The Authority is a joint exercise of powers authority duly organized and existing under and pursuant to that certain Joint Exercise of Powers Agreement, by and between the City and the former RDA of the City of Clayton with the City Council serving as the Board of Directors. It was created by the City of Clayton City Council in 1990 with the primary purpose of issuing bonded obligations to finance capital projects within the community for which repayment is secured by pledges of revenue from legally separate and distinct districts. The activities of the Authority are reported in the fiduciary fund financial statement section as the Authority’s debt is secured entirely by third parties that are not part of the primary government of the City and the City has no obligation for such debt. Separate financial statements of the Authority are available at the City’s website at www. ci. clayton. ca. gov.

55

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Basis of Accounting and Measurement Focus

The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements

The government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental and business type activities for the City, the primary government. Fiduciary activities of the City are not included in these statements.

These financial statements are presented on an " economic resources " measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets and related infrastructure assets and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position.

Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Certain types of transactions are reported as program revenues for the City in three categories:

Charges for services

Operating grants and contributions Capital grants and contributions

Certain eliminations have been made in regards to inter-fund activities, payables and receivables. All internal balances in the statement of net position have been eliminated in the statement of activities; internal service fund transactions have been eliminated. However, those transactions between governmental and business-type activities have not been eliminated. The following inter-fund activities have been eliminated:

Advances to/from other funds Due to/from other funds

Transfers in/out

56

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Basis of Accounting and Measurement Focus, Continued

Governmental fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund balances as presented in these statements to the net position as presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.

Governmental Fund Financial Statements

All governmental funds are accounted for on a spending or " current financial resources " measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The statement of revenues, expenditures and changes in fund balances present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Revenues are recorded when received in cash, except those revenues subject to accrual (generally sixty

  1. days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues, and other taxes. Revenues from other governmental agencies (excluding property taxes) are deemed to be available if received within one hundred eighty (180) days after fiscal year end. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Deferred revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the deferred revenue is removed from the balance sheet and revenue is recognized.

The reconciliation of the fund financial statements to the government-wide financial statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34 . The City has the following major governmental funds:

General Fund - This fund is the general operating fund of the City. It is used to account for all financial resources except those that are required to be accounted for in another fund.

57

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Basis of Accounting and Measurement Focus, Continued

Landscape Maintenance District – This special revenue fund accounts for the Community Facility District No. 2007-1 restricted special parcel tax approved over two-thirds the local electorate in the June 2016 election through the passing of “Measure H. ” This special parcel tax is restricted to fund the operation, maintenance, and improvement of specific city-wide public landscaped areas.

Successor Housing Agency – This special revenue fund accounts for the City’s low and moderate housing program, which was assumed by the by City Council action upon dissolution of the former redevelopment agency. Program revenue of this fund is primarily generated through the repayment on low-moderate income housing loans.

Capital Improvement Program - This capital projects fund accounts for the projects identified in the capital improvement program funded by various federal and state grants as well as through transfers from the General Fund.

Proprietary Fund Financial Statements

Proprietary fund financial statements include a statement of net position, a statement of revenues, expenses and change in fund net position, and a statement of cash flows for all proprietary funds. Internal service funds are presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the government-wide financial statements.

Proprietary funds are accounted for using the " economic resources " measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the statement of net position. The statement of revenues, expenses and changes in fund net position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which liability is incurred. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses.

The City has the following major enterprise fund:

Endeavor Hall - This fund accounts for all activities related to use of the facility. The primary use has been for wedding receptions.

58

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Basis of Accounting and Measurement Focus, Continued The City has the following internal service funds:

Capital Equipment Replacement Fund - This fund accounts for the operation, maintenance, and replacement of the City vehicles and equipment.

Self-Insurance Fund - This fund accounts for the administration of the City's self-insurance programs, payment of Employee Assistance Programs, and self-insured liability claim deductibles.

Pension Rate Stabilization Fund - This fund stabilizes major fluctuations in annual employer pension costs driven by market factors and actuarial changes.

Fiduciary Fund Financial Statements

The agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations, therefore only a statement of fiduciary net position is presented. Agency funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. Reclassifications were recorded to prior year amounts reported for various assets and liabilities for agency funds in order to be consistent with the current year’s presentation.

Private purpose trust funds account for resources held by the City as trustee for third party beneficiaries, and are used to report both the fiduciary net position and changes in fiduciary net position of the Successor Agency to the former Redevelopment Agency. Private purpose trust funds are accounted for under the full accrual basis of accounting.

Use of Restricted and Unrestricted Net Position

When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first.

Cash Equivalents

For purposes of reporting cash flows for the City’s proprietary funds, pooled cash and investments held by the City are considered cash equivalents as the proprietary fund can access pooled cash and investments in a manner similar to a demand deposit.

59

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Cash and Investments

The City pools cash and investments from all funds for the purpose of increasing income through investment activities. Interest income on investments is allocated to the funds on the basis of average month- end cash and investment balances. Investments are carried at fair value. Fair value is based on quoted market price if applicable. Otherwise the fair value hierarchy is as follows:

Level 1 – Values are unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.

Level 2 – Inputs, other than quoted prices, included within Level 1 that are observable for the asset or liabilities at the measurement date.

Level 3 – Certain inputs are unobservable inputs (supported by little or no market activity, such as the City’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date).

Local Agency Investment Fund (LAIF) determines fair value on its investment portfolio based on market quotations for these securities where market quotations are readily available, and on amortized cost or best estimate for those securities where market value is not readily available.

The City’s investment policy (Policy) states that the primary investment objective is safety with investments being legally permitted and sufficiently liquid to meet forecasted needs. Maximization of interest earnings is a secondary objective. Further, the Policy states that the City Treasurer has the ultimate responsibility to protect, preserve and maintain cash and investments. The Policy also established internal controls and reporting requirements. The Policy stipulates "Permitted Investments and Limitation on Investments. " The City invests in the California LAIF, which is part of the Pooled Money Investment Account operated by the California State Treasurer. LAIF funds are invested in high quality money market securities and are managed to insure the safety of the portfolio. A portion of LAIF's investments are in structured notes and asset-backed securities.

Investments held with CAMP are recorded at amortized cost in accordance with GASB Statement No. 79, Certain External Investment Pools and Pool Participants . The City participates in the California Asset Management Program (CAMP) which is a voluntary investment alternative authorized by Section 53601(p) of the California Government Code. CAMP is managed by a seven-member Board of Trustees comprised of California public agency finance officials. Investments are transacted by an investment advisor and all securities are held by a third-party custodian. All securities in CAMP are purchased under the authority of Section 53601, subdivisions (a) to (n) of the California Government Code.

60

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Cash and Investments, Continued

Certain disclosure requirements, if applicable, for deposits and investment risks are specified in the following areas:

Interest Rate Risk Credit Risk

  1. Overall
  2. Custodial Credit Risk
  3. Concentrations of Credit Risk

In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.

Prepaid Items

Certain payments to vendors reflect costs applicable to future fiscal years and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items in governmental funds are equally offset by amounts included nonspendable fund balance which indicates that they do not constitute available spendable resources even though they are a component of net position. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.

Investment in Affordable Housing

This City Successor Housing Agency special revenue fund has purchased and re- sold several housing properties located in Stranahan Circle to low and moderate income households. The City carries the difference between the cost and sale on these properties as an investment in affordable housing until the property is either bought back by the City or sold on the open market. The City participates in the profits on any sales of these properties to an outside party in the same proportion as what the low and moderate income purchaser acquired the property from the City at the below market subsidized value. The City reports the investment in affordable housing at its proportionate equity share of the fair market value of the underlying properties at year-end. Stranahan Circle properties are considered “level 2” investments. The City values their interest in the properties annually using third party published market inputs. At June 30, 2022 the fair value was $3,170,453, which includes an increase of $131,382 for the year then ended.

Capital Assets

Capital assets are valued at cost or, during the initial implementation, estimated historical cost if actual historical cost was not available. Donated capital assets are valued at their estimated fair market value on the date donated. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value rather than fair value. City policy has set the capitalization threshold for reporting infrastructure at $100,000; all other capital assets

61

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Capital Assets, Continued

are set at $5,000. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:

Buildings 50 years

Improvements other than buildings 20 – 75 years Vehicles, machinery and equipment 5 – 10 years

Infrastructure 20 – 75 years

In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 34 which requires the inclusion of infrastructure capital assets in local governments' basic financial statements. In accordance with GASB Statement No. 34, the City has included all infrastructure into the current basic financial statements. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include streets, park lands, and buildings. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems. Interest accrued during capital assets construction, if any, is capitalized for the business-type and proprietary funds as part of the asset cost. For all infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The City commissioned an appraisal of City owned infrastructure and property as of June 30, 2003. This appraisal determined the original cost, which is defined as the actual cost to acquire new property in accordance with market prices at the time of first construction/acquisition.

Original costs were developed in one of three ways: (1) historical records; (2) standard unit costs appropriate for the construction/acquisition date; or (3) present cost indexed by a reciprocal factor of the price increase from the construction/acquisition date to the current date. The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date on a straight line, unrecovered cost method was computed using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost.

Long-Term Liabilities

In the government- wide financial statements, long-term debt and other financial obligations are reported as liabilities in the appropriate activities columns. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable premium or discount. Issuance costs are reported as deferred charges.

62

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Long-Term Liabilities, Continued

The governmental fund financial statements do not present long-term debt, which are shown in the reconciliation of the governmental funds balance sheet to the government -wide statement of net position. Governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

Compensated Absences

In the government-wide financial statements compensated absences are recorded as incurred and related expenses and liabilities are reported by activity. The long-term portion of governmental activities is liquidated primarily by the General Fund. In the governmental funds compensated absences are recorded as expenditures in the years paid, as it is the City's policy to liquidate any unpaid compensated absences at June 30th from future resources, rather than currently available financial resources. Compensated absences include vacation as well as compensated leave hours earned in-lieu of overtime. It is the policy of the City to pay up to and capped at a maximum of eighteen (18) times an employee’s capped monthly vacation accrual upon retirement or termination.

Pensions

For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications.

Other Post-Employment Benefits (OPEB)

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments, if any, are reported at fair value.

63

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Other Post-Employment Benefits (OPEB), Continued

Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation date June 30, 2022

Measurement Date June 30, 2022

Measurement Period July 1, 2021 – June 30, 2022

Leases

The City is a lessee for noncancelable equipment leases. The City recognizes a lease liability and an intangible right-to-use asset (lease asset) in its financial statements. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Key estimates and judgments related to leases include how the City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) the lease term, and (3) lease payments.

Net Position / Fund Balances

Government-Wide Financial Statements

In the government-wide financial statements, net position is classified in the following categories:

Net Investment in Capital Assets - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position - This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position - This amount is all net position that do not meet the definition of "net investment in capital assets" or "restricted net position. " Nonspendable governmental funds balances are categorized as unrestricted net position on the government-wide financial statements.

64

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Net Position / Fund Balances, Continued Fund Balance Reporting

Equity of governmental funds are reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. The City Council, as the highest level of decision-making authority, commits and assigns fund balances through the passing of resolutions and ordinances, requiring an equal action for modification or rescinding thereof. It is the policy of the City to spend funds in order from restricted to unassigned, as listed below.

Fund balances for the governmental funds are made up of the following:

Non-spendable – Includes amounts that cannot be spent because they are either not in spendable form, or are legally or contractually required to be maintained intact.

Restricted – Includes amounts that should be reported as restricted when constraints placed on the use of resources are either externally imposed by creditors, grantors, contributors, or laws and regulations of other governments; or imposed by law through constitutional provisions or enabling legislation.

Committed – Includes amounts that cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of action it employed to previously commit those amounts.

Assigned – Includes amounts constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed, except for stabilization arrangements.

Unassigned – The residual funds that have not been assigned to other funds, are not non-spendable, restricted, committed, or assigned to specific purposes. The General Fund is the only fund that reports a positive unassigned fund balance.

The City Council has formally adopted a policy requiring a minimum General Fund reserve contingency of $250,000.

Property tax revenues are recognized in the fiscal year for which the tax and assessment is levied. The County of Contra Costa (County) levies, bills, and collects property taxes and special assessments for the City. The County remits the entire amount levied and handles all delinquencies, retaining interest and penalties (under the Teeter Plan). Secured and unsecured property taxes are levied on July 1 based on January 1 assessed valuation and are payable in two installments, becoming delinquent on December 10th and April 10th.

65

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Reclassifications

Certain prior year balances may have been reclassified in order to conform to current year presentation.

These reclassifications had no effect upon reported net position.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.

Inter-fund Balances/Internal Balances

Outstanding balances between funds are reported as due to and due from other funds. These are generally repaid within the following fiscal year.

Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances. "

New Accounting Pronouncements

The following Governmental Accounting Standards Board Statements have been implemented in the current financial statements:

GASB Statement No. 87, “Leases”

The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments.

This Statement will increase the usefulness of governments’ financial statements by requiring reporting of certain lease liabilities that currently are not reported. It will enhance comparability of financial statements among governments by requiring lessees and lessors to report leases under a single model.

This Statement also will enhance the decision-usefulness of the information provided to financial statement users by requiring notes to financial statements related to the timing, significance, and purpose of a government’s leasing arrangements. The implementation of this pronouncement had a material impact on the City’s financials.

66

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued New Accounting Pronouncements, Continued

GASB Statement No. 89, “Accounting for Interest Cost Incurred before the End of a Construction Period” The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period.

The requirements of this Statement will improve financial reporting by providing users of financial statements with more relevant information about capital assets and the cost of borrowing for a reporting period. The resulting information also will enhance the comparability of information about capital assets and the cost of borrowing for a reporting period for both governmental activities and business-type activities. The implementation of this pronouncement did not have a material impact on the City’s financials.

GASB Statement No. 92 “Omnibus 2020”

The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics and includes specific provisions. The topics include but are not limited to leases, intra-entity transfers between a primary government and a post-employment benefit plan component unit, accounting for pensions and OPEB related assets, measurement of liabilities related to asset retirement obligations, and nonrecurring fair value measurements of assets or liabilities. The implementation of this pronouncement did not have a material impact on the City’s financials.

GASB Statement No. 93 “Replacement of Interbank Offered Rates”

The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an Interbank Offer Rate (IBOR). This Statement achieves that objective by:

Providing exceptions for certain hedging derivative instruments to the hedge accounting termination provisions when an IBOR is replaced as the reference rate of the hedging derivative instrument’s variable payment

Clarifying the hedge accounting termination provisions when a hedged item is amended to replace the reference rate

Clarifying that the uncertainty related to the continued availability of IBORs does not, by itself, affect the assessment of whether the occurrence of a hedged transaction is probable

Removing LIBOR as an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap

67

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued New Accounting Pronouncements, Continued

Identifying a Secured Overnight Financing Rate and the Effective Federal Funds Rate as appropriate benchmark interest rates for the qualitative evaluation of the effectiveness of an interest rate swap.

Clarifying the definition of reference rate, as it is used in Statement 53, as amended.

The removal of London IBOR as an appropriate benchmark interest rate is effective for reporting periods ending after December 31, 2021 (fiscal year 2022-23). The City is currently evaluating the potential impact on the City’s financials.

All other requirements of this Statement are effective for the current fiscal year, and did not have a material impact on the financial statements.

GASB Statement No. 97 “Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – an amendment of GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32”

The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. The implementation of this pronouncement did not have a material impact on the City’s financials.

GASB Statement No. 98, The Annual Comprehensive Financial Report - This Statement establishes the term annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. The implementation of this Statement did not have a material effect on the City’s financial statements.

68

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Future Accounting Pronouncements

The following Governmental Accounting Standards Board Statements are effective in future years subsequent to the current financial reporting period:

GASB Statement No. 91 “Conduit Debt Obligations”

The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures.

The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders’ uncertainty as to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financial resources of issuers and help users assess issuers’ roles in conduit debt obligations.

The requirements of this Statement are effective for reporting periods beginning after December 15, 2021 (fiscal 2023). Earlier application is encouraged. The City is currently evaluating the potential impact on the City’s financials.

GASB Statement No. 94 “Public-Private and Public-Public Partnerships and Availability Payment Arrangements”

The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction.

69

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Future Accounting Pronouncements, Continued

The requirements of this Statement will improve financial reporting by establishing the definitions of PPPs and APAs and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions. That uniform guidance will provide more relevant and reliable information for financial statement users and create greater consistency in practice. This Statement will enhance the decision usefulness of a government’s financial statements by requiring governments to report assets and liabilities related to PPPs consistently and disclose important information about PPP transactions. The required disclosures will allow users to understand the scale and important aspects of a government’s PPPs and evaluate a government’s future obligations and assets resulting from PPP.

PPPs should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or if applicable to earlier periods, the beginning of the earliest period restated). The requirements of this Statement are effective for fiscal years beginning after June 15, 2022 (fiscal year 2022-23), and all reporting periods thereafter. The City is currently evaluating the potential impact on the City’s financials.

GASB Statement No. 96 “Subscription-Based Information Technology Arrangements”

This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset— an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases , as amended.

The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a government’s financial statements by requiring a government to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a government’s SBITA activities and evaluate a government’s obligations and assets resulting from SBITAs.

The requirements of this Statement are effective for fiscal years beginning after June 15, 2022 (fiscal year 2022-23), and all reporting periods thereafter. The City is currently evaluating the potential impact on the City’s financials.

70

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Future Accounting Pronouncements, Continued

GASB Statement No. 99, “ Omnibus 2022” - The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The practice issues addressed by this Statement are as follows:

Classification and reporting of derivative instruments within the scope of Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, that do not meet the definition of either an investment derivative instrument or a hedging derivative instrument

Clarification of provisions in Statement No. 87, Leases, as amended, related to the determination of the lease term, classification of a lease as a short-term lease, recognition and measurement of a lease liability and a lease asset, and identification of lease incentives

Clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, related to (a) the determination of the public-private and public- public partnership (PPP) term and (b) recognition and measurement of installment payments and the transfer of the underlying PPP asset

Clarification of provisions in Statement No. 96, Subscription-Based Information Technology

Arrangements, related to the subscription-based information technology arrangement (SBITA) term, classification of a SBITA as a short-term SBITA, and recognition and measurement of a subscription liability

Extension of the period during which the London Interbank Offered Rate (LIBOR) is considered an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap that hedges the interest rate risk of taxable debt

Accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance Program (SNAP)

Disclosures related to nonmonetary transactions

Pledges of future revenues when resources are not received by the pledging government

Clarification of provisions in Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, as amended, related to the focus of the government-wide financial statements

Terminology updates related to certain provisions of Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position

Terminology used in Statement 53 to refer to resource flows statements.

The requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 were effective for the current fiscal year and did not have a material impact on the City’s financial statements.

71

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Future Accounting Pronouncements, Continued

The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022 (fiscal 2022-23), and all reporting periods thereafter.

The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023 (fiscal 2023-24), and all reporting periods thereafter.

GASB Statement No. 100, “ Accounting Changes and Error Corrections–An Amendment of GASB Statement No. 62”

The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. This Statement also addresses corrections of errors in previously issued financial statements.

This Statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This Statement requires disclosure in notes to financial statements of descriptive information about accounting changes and error corrections, such as their nature. In addition, information about the quantitative effects on beginning balances of each accounting change and error correction should be disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to beginning balances as restated.

The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023 (fiscal 2023-24), and all reporting periods thereafter. Implementation of this Statement may have a material effect on the financial statements of the City.

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72

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Future Accounting Pronouncements, Continued

GASB Statement No. 101, “ Compensated Absences”

This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.

The unified recognition and measurement model in this Statement will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. In addition, the model can be applied consistently to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave.

The requirements of this Statement are effective for fiscal years beginning after December 15, 2023 (fiscal 2024-25), and all reporting periods thereafter. Earlier application is encouraged. The City does not anticipate that the Statement will have a material effect on the financial statements.

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73

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

2. CASH AND INVESTMENTS

Classification

The City’s total cash and investments, at fair value, are presented on the accompanying financial statements in the following allocation:

Government-Wide Statement of Net Position

Governmental Activities

Cash and investments

$

13,441,679

Statements of Fiduciary Net Position

Private Purpose Trust Fund

Cash and investments

526,807

Cash and investments with fiscal agents

1

Agency Funds

Cash and investments

1,632,920

Cash and investments with fiscal agents

376,103

Investments in bonds

470,000

Total

$

16,447,510

Cash and investments as of June 30, 2022 consist of the following:

Cash on hand

$

1,000

Deposits with financial institutions

1,129,766

Investments

15,316,744

Total

$

16,447,510

Policy

Investments Authorized by the California Government Code and the City's Investment Policy

The following table identifies the investment types that are authorized for the City of Clayton by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Maximum

Maximum

Maximum

Percentage of

Percentage of

Authorized Investment Type

Maturity

Portfolio

One Issuer

Local Agency Investment Fund (State Pool)

N/A

None

$40 million

CAMP

N/A

None

None

Money Market Funds

N/A

None

None

U. S. Treasury Obligations

5 years

None

None

U. S. Government Agency Issues

5 years

20%

None

Bank Deposits

N/A

None

None

Negotiable Time Certificates of Deposit

5 years

None

None

Medium Term Corporate Bonds

5 years

20%

None

74

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

2. CASH AND INVESTMENTS, Continued

Policy, Continued

Investments Authorized by Debt Agreements

Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum

Maximum

Maximum

Percentage of

Investment in

Authorized Investment Type

Maturity

Portfolio

One Issuer

Money Market Mutual Funds

N/A

N/A

N/A

U. S. Government Agency Issues

5 years

20%

None

Federal Housing Administration Debentures

N/A

N/A

N/A

Commercial paper

92 days

N/A

N/A

Demand or time deposits

366 days

N/A

N/A

Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Usually, the later the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of investments by maturity:

Remaining Maturity (in Months)

12 Months or

13-24

25-36

37-48

49-60

Investment Type

Totals

Less

Months

Months

Months

Months

Pooled Investments:

Local Agency Investment

Fund (LAIF)

$

2,962,837

$

2,962,837

$

-

$

-

$

-

$

-

California Asset Management

Program (CAMP)

893,134

893,134

-

-

-

-

Certificates of Deposit

8,759,339

3,192,907

1,072,876

1,365,264

1,872,289

1,256,003

Government Securities

1,981,454

-

482,325

137,958

862,826

498,345

Held by Bond Trustees:

U. S. Treasury Note

249,980

249,980

-

-

-

-

Municipal Bonds

470,000

470,000

-

-

-

-

Total Investments

$

15,316,744

$

7,768,858

$

1,555,201

$

1,503,222

$

2,735,115

$

1,754,348

75

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

2. CASH AND INVESTMENTS, Continued

Credit Risk

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.

Investment Type

AAA

AA+

A

Unrated

Total

Pooled Investments:

Local Agency Investment

Fund (LAIF)

$

-

$

-

$

-

$

2,962,837

$

2,962,837

California Asset Management

Program (CAMP)

893,134

-

-

-

893,134

Certificates of Deposit

-

-

-

8,759,339

8,759,339

Government securities

1,981,454

-

-

-

1,981,454

Held by Bond Trustees:

U.S. Treasury Note

-

-

-

249,980

249,980

Municipal Bonds

-

-

-

470,000

470,000

Total Investments

$

12,442,156

$

2,874,588

$

-

$

-

$

15,316,744

Concentration of Credit Risk

This is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. Accordingly, the notes to the financial statements should disclose if the government has five (5) percent or more of its total investments in a single issuer. More than five percent of the City’s investments are with the “Middle School” Community Facilities District No. 1990-1.

Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counter party (e. g. broker -dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits. The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit) . The fair value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

76

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

2. CASH AND INVESTMENTS, Continued

Investment Fair Value

The City has the following recurring fair value measurements as of June 30, 2022:

U. S. government agency note, certificates of deposit, Local Agency Investment Fund (LAIF), and California Asset Management Program (CAMP) values are based on unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date [Level 1 inputs].

Municipal bonds are valued based on unobservable inputs (supported by little or no market activity, such as the City’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date) [Level 3 inputs].

The City is a voluntary participant in the LAIF and the CAMP that are regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF and CAMP for the entire respective portfolios (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF and CAMP, which are recorded on an amortized cost basis.

3. LOANS AND NOTES RECEIVABLE

The following is a summary of loans and notes receivable of the City for the year ended June 30, 2022:

Balance

Balance at

Successor Housing Agency:

July 1, 2021

Additions

Deletions

June 30, 2022

Diamond Terrace P. A. M. Note

$

2,833,600

$

-

$

(111,400)

$

2,722,200

Eden Affordable Housing Note

567,000

-

-

567,000

Stranahan Affordable Housing Notes

22,350

-

-

22,350

Total Successor Housing Agency

3,422,950

-

(111,400)

3,311,550

Total Notes Receivable

$

3,422,950

$

-

$

(111,400)

$

3,311,550

Diamond Terrace Note

On September 21, 1999, the former RDA low-moderate housing fund made a loan to the Professional Apartment Management, Inc. ("PAM") in the amount of $750,000, at a non-interest bearing rate, to construct and develop an affordable senior assisted living center on the site known as "Diamond Terrace." The note is secured by the Deed of Trust. The former RDA loaned an additional $1,286,000 on October 24, 2001. On December 1, 2003, PAM began drawing on a $2,000,000 loan from the former RDA in the amount of $200,000 annually. The principal balance is payable commencing on October 1, 2005 through October 1, 2030. The balance of the loan due to the Successor Housing Agency was $2,722,200 at June 30, 2022.

77

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

3. LOANS AND NOTES RECEIVABLE, Continued Eden Housing Loan

On October 13, 1992, the former RDA low-moderate housing fund made a loan to the Peace Grove, Inc. in the amount of $567,000, at a non-interest bearing rate, for the purchase of land for a redevelopment and housing project for low-income mental health system clients. The loan is secured by the Deed of Trust. The principal balance is payable on December 18, 2052. As of June 30, 2022, the outstanding balance of the loan due to the Successor Housing Agency was $567,000.

Stranahan Affordable Housing Loans

The former RDA low-moderate housing fund participated in a second mortgage assistance program, whereby qualified applicants are loaned money for a "silent second" down payment to purchase a home in the Stranahan Development within the City. There are five individual loans outstanding. Interest is accrued on the principal for the first 15-35 years and then the total of accrued interest and principal is forgiven over the last 10 years of the term of the lease. As of June 30, 2022, the outstanding balance of the loans due to the Successor Agency was $22,350 of principal. The collectability of the accrued interest on these notes ($31,348) is doubtful and an allowance has been recorded to offset the full amount.

4. INTERFUND TRANSACTIONS

Due To, Due From

At June 30, 2022, the City had the following short-term interfund receivables and payables:

Due from

Non-major

Governmental

Endeavor

Due to

Funds

Hall

Total

General Fund

$

-

$

120,983

$

120,983

Total

$

-

$

120,983

$

120,983

General Fund cash flow loans totaling $ 120,983 were made to Endeavor Hall. The balance of the Endeavor Hall receivable is expected to be repaid from future facility rental fees.

78

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

4. INTERFUND TRANSACTIONS, Continued

Interfund Transfers

The following is a summary of the City’s interfund transfers for the year ended June 30, 2022:

Transfers In

Capital

Non-major

General

Improvement

Governmental

Transfers Out

Fund

Program

Funds

Total

Landscape Management

$

40,679

$

-

$

1,130

$

41,809

American Rescue Plan Act

1,467,024

-

-

1,467,024

Non-major Governmental Funds

89,978

1,632,609

20,084

1,742,671

Total

$

1,597,681

$

1,632,609

$

21,214

$

3,251,504

The City transferred money into the General Fund from the following funds: Landscape Maintenance, Gas Tax HUTA, the Grove Park District, Oakhurst Geological Hazard Abatement District, Neighborhood Street Lighting District, Measure J Grants, Grants, American Rescue Act Plan grant, and Stormwater Treatment Assessment District to reimburse the City for administrative support activities. In addition, the City transferred money into the Capital Improvement Program from Gas Tax HUTA, Gas Tax RMRA, and Measure J Grants to fund project costs associated with the Stormwater Treatment Assessment District.

5. LEASES

The City has several leasing arrangements, summarized below.

The City has accrued liabilities for two equipment leases. The discount rate used in the calculation of the lease liabilities were 3.69% and 5.00%. The remaining liability for the leases was $244,640 as of June 30, 2022. Right -to -use assets, net of amortization, for the leases totaled $216,692 as of June 30, 2022. The City is required to make principal and interest payments of $924 a month through July 2023, and $33,525 a year through September 2028.

The City’s schedule of future payments included in the measurement of the lease liability is as follows:

Fiscal Year

Principal

Interest

Total

Ending June 30,

2023

$ 44,718

$ 339

$ 45,057

2024

33,833

616

34,449

2025

33,014

511

33,525

2026

33,116

409

33,525

2027

33,217

307

33,524

2028-2029

66,742

308

67,040

Total

$ 244,640

$ 2,490

$ 247,130

79

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

6. CAPITAL ASSETS

Government-Wide Financial Statements

As of June 30, 2022 the City's capital assets consisted of the following:

Governmental

Business-Type

Total

Net depreciable Assets:

Activities

Activities

Construction in progress

$

1,046,789

$

-

$

1,046,789

Land

2,086,965

167,738

2,254,703

Total non depreciable assets

3,133,754

167,738

3,301,492

Depreciable Assets:

Buildings

5,937,106

1,400,744

7,337,850

Improvements

7,660,589

159,579

7,820,168

Machinery and equipment

1,861,599

5,024

1,866,623

Infrastructure

33,239,930

-

33,239,930

Intangible assets (right-to-use)

254,694

-

254,694

Total depreciable assets

48,953,918

1,565,347

50,519,265

Total accumulated depreciation

(22,971,467)

(723,882)

(23,695,349)

Depreciable assets, net

25,982,451

841,465

26,823,916

Total governmental activities capital assets, net

$

29,116,205

$

1,009,203

$

30,125,408

The following is a summary of governmental activities capital assets transactions for the year ended June 30, 2022:

Balance

Balance

Non depreciable Assets:

July 1, 2021

Additions

Deletions

June 30, 2022

Construction in progress

$

1,109,270

$

962,813

$

(1,025,294)

$

1,046,789

Land

2,086,965

-

-

2,086,965

Total non depreciable assets

(1,025,294)

3,196,235

962,813

3,133,754

Depreciable Assets:

Machinery and equipment

1,773,780

153,184

(65,365)

1,861,599

Buildings

5,937,106

-

-

5,937,106

Improvements

6,635,295

1,025,294

-

7,660,589

Infrastructure

33,239,930

-

-

33,239,930

Intangible assets

-

254,694

-

254,694

Total depreciable assets

47,586,111

1,433,172

(65,365)

48,953,918

Accumulated depreciation:

Machinery and equipment

(1,285,928)

(100,425)

65,365

(1,320,988)

Buildings

(3,075,734)

(118,580)

-

(3,194,314)

Improvements

(3,239,353)

(327,540)

-

(3,566,893)

Infrastructure

(14,387,646)

(463,624)

-

(14,851,270)

Intangible assets

-

(38,002)

-

(38,002)

Total accumulated depreciation

(21,988,661)

(1,048,171)

65,365

(22,971,467)

Depreciable assets, net

25,597,450

385,001

-

25,982,451

Total governmental activities

$

28,793,685

$

1,347,814

$

(1,025,294)

$

29,116,205

capital assets, net

80

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

6. CAPITAL ASSETS, Continued Government-Wide Financial Statements, Continued

For the year ending June 30, 2022 depreciation and amortization expense was charged to functions/programs of the governmental activities as follows:

General government

$

81,913

Parks and recreation

252,329

Public safety

128,108

Public works

585,821

Total depreciation expense

$

1,048,171

The following is a summary of business-type activities capital assets transactions for the year ended June 30, 2022:

Balance

Balance

Non depreciable Assets:

July 1, 2021

Additions

Deletions

June 30, 2022

Land

$

167,738

$

-

$

-

$

167,738

Total non depreciable assets

-

167,738

-

167,738

Depreciable Assets:

Machinery and equipment

5,024

-

-

5,024

Improvements

159,579

-

-

159,579

Buildings

1,400,744

-

-

1,400,744

Total depreciable assets

-

1,565,347

-

1,565,347

Accumulated depreciation:

Machinery and equipment

(5,024)

-

-

(5,024)

Improvements

(153,449)

(858)

-

(154,307)

Buildings

(536,537)

(28,014)

-

(564,551)

Total accumulated depreciation

(695,009)

(28,872)

-

(723,882)

Depreciable assets, net

870,338

(28,872)

-

841,465

Total business-type activities

$

1,038,076

$

(28,872)

$

-

$

1,009,203

capital assets, net

For the year ending June 30, 2022 depreciation expense was charged to functions/programs of the business-type activities as follows:

Endeavor Hall

$

28,872

Total depreciation expense

$

28,872

81

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

6. CAPITAL ASSETS, Continued

Fund Financial Statements

The governmental fund financial statements do not present general government capital assets, which are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position. The capital assets of the enterprise funds in the Proprietary Fund Financial Statements are the same as those shown in the business-type activities of the Government-Wide Financial Statements. Internal Service Funds' capital assets are combined with governmental activities.

7. COMPENSATED ABSENCES

Compensated absences include vacation and sick leave. It is the policy of the City to pay 100% of the capped accumulated vacation leave when a public safety employee retires or terminates, and up to 18 months of a general employee's maximum annual accrual allowed upon the same leave of employment action. The City recognizes the liability for its compensated absences in the governmental activities. The following is a summary of compensated absences transactions during the year ended June 30, 2022:

Beginning

Ending

Balance

Balance

Amount Due in

July 1, 2021

Additions

Deletions

June 30, 2022

One Year

Compensated absences

$

165,747

$

131,505

$

129,962

$

167,290

$

83,645

8. CONDUIT DEBT

The following debt issuances were issued by the City for the express purpose of providing capital financing for third parties that are not part of the primary government of the City. Although these conduit debt obligations may bear the name of the City, the City has no obligation for such debt beyond the resources provided by a lease or loan with the third party on whose behalf they are issued.

Middle School Community Facilities District- Original Issue $6,400,000

Middle School Community Facilities District (CFD) Bonds in the principal amount of $6,400,000 were issued on September 2, 1990 by the City under the Mello-Roos Community Facilities Act of 1982. Principal payments are payable on September 2 of each year. Interest payments are payable semi-annually on March 2 and September 2. The bonds are non-city obligations and are secured solely by special assessment revenue from CFD No. 1990-1. As of June 30, 2022, the outstanding balance of the non-city bond obligation was $470,000 .

82

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

8. CONDUIT DEBT, Continued

Lydia Lane Sewer Assessment District-Original Issue $228,325

Lydia Lane Sewer Assessment District Bonds in the principal amount of $228,325 were issued on August 5, 2002 by the City. Principal payments are payable on September 2 of each year. Interest payments are payable semi-annually on March 2 and September 2. The bonds are non city obligations and are secured by sewer assessment district revenue. As of June 30, 2022, the outstanding balance of the non-city bond obligation was $133,325.

Clayton Financing Authority 2007 Special Tax Revenue Refunding Bonds-Original Issue $5,060,000

Refunding bonds were issued on May 17, 2007 by the Clayton Financing Authority in the principal amount of $5,060,000 to refund the Authority's 1997 Special Tax Revenue Refunding Bonds (the "1997 Bonds"), finance the acquisition and construction of certain public capital improvements (the Project), establish a reserve fund for the Bonds (funded part in cash and part from a reserve fund surety bond), and to pay the costs of issuance of the Bonds. The 1997 Bonds were issued to purchase the CFD 1990-1 local obligations, which are recovered by special assessment revenues from CFD 1990-1. Principal payments are payable on September 2 of each year. Interest payments are payable semi- annually on March 2 and September 2. The bonds are non city obligations and are secured by revenues received by the Authority as the result of the payment of debt service on the CFD 1990-1 Local Obligations. As of June 30, 2022, the outstanding balance of the non-city bond obligation was $420,000.

9. UNEARNED AND DEFERRED REVENUE

Deferred Revenue

Deferred inflows of resources were recorded in the fund financial statements because the funds were not available to finance expenditures of the current period. At June 30, 2022, deferred inflows of resources in the fund financial statements were as follows.

Successor

Other

Total

General

Housing

Governmental

Governmental

Deferred revenue

Fund

Agency

Funds

Funds

Unavailable state-mandated

$

260,379

$

-

$

-

$

260,379

program reimbursements

Unavailable accounts receivable

-

-

332,166

332,166

Unavailable loans receivable

-

2,722,200

-

2,722,200

Total deferred revenue

$

260,379

$

2,722,200

$

332,166

$

3,314,745

83

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

10. RISK MANAGEMENT

The City participates in the Municipal Pooling Authority of Northern California (MPA), a joint powers agreement between twenty cities, which provides insurance coverage for liability, auto, property, and workers' compensation claims. Claims liabilities are accrued when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. The MPA covers claims in an amount up to $29,000,000. The City has a deductible of $5,000 per claim for liability cases and no deductible for workers’ compensation claims. Once the City's deductible is met, the MPA becomes responsible for payment of all claims and legal defense. The MPA is governed by a board consisting of one voting representative from each member municipality. The Board controls the operations of the MPA including selection of management, approval of operating budgets, and is independent of any influence by member municipalities beyond their representation on the Board. The City's general liability and workers’ compensation premium payments made to MPA for the fiscal year ending June 30, 2021 are in accordance with formulas established by the MPA. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. Financial statements may be obtained from MPA at 1911 San Miguel Drive, Suite 200, Walnut Creek, CA 94596. The City has had no settlements which exceeded insurance coverage during fiscal year ending June 30, 2021. Estimates of incurred, but not reported, liability claims are included in the City's claims estimates and based upon historical experiences as calculated by the MPA.

11. DEFINED BENEFIT PENSION PLAN

Plan Description

The Plan is a cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan benefit provisions, assumptions for funding purposes (not accounting purposes) and membership information is listed in the latest Annual Actuarial Valuation Report as of June 30, 2018. This report is a publicly available valuation report that can be obtained at CalPERS’ website under Forms and Publications. All qualified permanent and probationary employees are eligible to participate in the City’s separate Public Safety (police) and Miscellaneous (all other) defined benefit pension plans. Both the Public Safety and Miscellaneous plans are part of the public agency cost-sharing multiple employer defined benefit pension plan (PERF C), which is administered by CalPERS. PERF C consists of a Safety and Miscellaneous pool (also referred to as “risk pools”), which are comprised of individual employer safety and miscellaneous rate plans, respectively. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be obtained from CalPERS at 400 Q Street, Sacramento, CA 95811.

84

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

11. DEFINED BENEFIT PENSION PLAN, Continued Benefits Provided

CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service become vested and are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non- duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows:

Miscellaneous Pension Plan

Tier I

Tier II

Tier III (PEPRA)*

Hire Date

Before 7/1/2010

On or after

On or after

7/1/2020 but

1/1/2013

Before 1/1/2013

Benefit formula

2%@55

2%@60

2%@62

Benefit vesting schedule

5 years of service

5 years of service

5 years of service

Benefit payments

Monthly for life

Monthly for life

Monthly for life

Minimum retirement age

50

50

52

Monthly benefits, as % of

eligible compensation

1. 426% - 2. 418%

1. 092% - 2. 418%

1.0%-2.5%

Safety Pension Plan

Tier I

Tier II

Tier III (PEPRA)*

Hire Date

Before 7/1/2010

On or after

On or after

7/1/2010 but

1/1/2013

Before 1/1/2013

Benefit formula

3%@55

2%@50

2.7%@57

Benefit vesting schedule

5 years of service

5 years of service

5 years of service

Benefit payments

Monthly for life

Monthly for life

Monthly for life

Minimum retirement age

50

50

50

Monthly benefits, as % of

eligible compensation

2.4%-3.0%

2.0%-2.7%

2.0%-2.7%

*The California Public Employees’ Reform Act (PEPRA) was enacted in 2012 and became effective January 1, 2013.

85

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

11. DEFINED BENEFIT PENSION PLAN, Continued

Employees Covered

At June 30, 2022 the following employees were covered by the benefit terms for each plan:

Miscellaneous

Public Safety

Inactive employees (or their beneficiaries)

Tier I

Tier II

PEPRA

Tier I

Tier II

PEPRA

currently receiving benefits

27

7

1

28

7

1

Inactive employees entitled to but not yet

receiving benefits

16

5

10

10

2

12

Active employees

3

3

8

3

0

7

Total

46

15

19

41

9

20

Contributions

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. The Plan’s actuarially determined rate is based on the estimated amount necessary to pay the costs of benefits earned by employees during the year, with an additional amount to pay any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2022, the City’s contractually required contributions, which are actuarially determined, were as follows:

Employer Contributions

Normal Cost

Unfunded

Percentage of

Actuarial

Total

Pension Plan

Payroll

Liability

Miscellaneous Tier I

$

46,789

$

156,440

$

203,229

Miscellaneous Tier II

25,137

2,371

27,508

Miscellaneous PEPRA

31,179

2,749

33,928

Public Safety Tier I

91,296

214,242

305,538

Public Safety Tier II

-

1,729

1,729

Public Safety PEPRA

76,497

4,644

81,141

Total

$

270,898

$

382,175

$

653,073

86

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

11. DEFINED BENEFIT PENSION PLAN, Continued Contributions, Continued

The following is a summary of actuarially determined employer and contractually determined employee pension contribution rates as a percentage of payroll for the year ended June 30, 2022:

Employer

Employee

Pension Plan

Contribution Rate

Contribution Rate

Miscellaneous Tier I

10.34

7.0001

Miscellaneous Tier II

8.65

7.000

Miscellaneous PEPRA

7.59

6.750

Public Safety Tier I

20.64

9.000

Public Safety Tier II

18.19

9.000

Public Safety PEPRA

13.13

13.000

  1. Paid on behalf of employee per labor agreement referred to as “Employee Paid Member Contribution” (EPMC) by CalPERS.

Net Pension Liability

At June 30, 2022, the City reported total net pension liabilities for its proportionate share in both the

Miscellaneous and Safety plans as follows:

Proportionate

Net Pension Liability

Share of Net

Pension Plan

(Asset)

Pension Liability

Miscellaneous

$

1,177,421

0. 06201%

Public Safety

1,582,318

0. 04509%

Total

$

2,759,739

$

0. 05103%

The City’s net pension liability was based on the proportionate shares (in dollars) determined by CalPERS based on individual actuarial measurement specific to each rate plan in the Miscellaneous Pool and the Safety Pool. The City’s total proportionate share of the cost-sharing plan pension amounts is the sum of the pension amounts allocated to each of the City’s Miscellaneous and Safety rate plans. The City’s net pension liability is measured as of June 30, 2021, using annual actuarial valuations as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures.

87

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

11. DEFINED BENEFIT PENSION PLAN, Continued

Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources

For the year ending June 30, 2022 the City recognized a total pension revenue of $730,721. At June 30, 2022 the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Net Deferred

Deferred

Deferred

Outflows /

Outflows of

Inflows of

(Inflows) of

Pension contributions subsequent

Resources

Resources

Resources

to measurement date

$

653,073

$

-

$

653,073

Net difference between projected

and actual earnings on

pension plan investments

-

1,969,609

(1,969,609)

Change in employer’s proportion

230,195

52,731

177,464

Changes in assumptions

-

-

-

Differences between actual and

expected experiences

402,373

-

402,373

Differences between the employer’s

contributions and the employer’s

proportion share of contributions

-

449,044

(449,044)

Total

$

1,285,641

$

2,471,384

$

(1,185,743)

Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources, Continued

Of the reported deferred outflows of resources, $653,073 is related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023 (measurement period ended June 30, 2022). Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Fiscal

Miscellaneous

Safety

Total

Year End

Risk Pool

Risk Pool

2023

(235,352)

(186,716)

(422,068)

2024

(244,796)

(170,259)

(415,055)

2025

(255,792)

(202,699)

(458,491)

2026

(284,038)

(259,164)

(543,202)

Thereafter

-

-

-

88

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

11. DEFINED BENEFIT PENSION PLAN, Continued Discount Rate

The discount rate used to measure the total pension liability was 7. 15%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7. 15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7. 15% will be applied to all plans in the PERF C. The stress test results are presented in a detailed report that can be obtained from the CalPERS website at www. calpers. ca. gov.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best -estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long- term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical and forecasted information for all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building -block approach. Using the expected nominal returns for both short-term and long- term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class are as follows:

Assumed Asset

Real Return

Real Return

Asset Class

Allocation

Years 1-101

Years 11+2

Global Equity

50.

00%

4. 80%

5.

98%

Fixed Income

28.

00%

1. 00%

2.

62%

Inflation Assets

-

0. 77%

1.

81%

Private Equity

8.

00%

6. 30%

7.

23%

Real Assets

13.

00%

3. 75%

4.

93%

Liquidity

1.

00%

-

-0. 92%

Total

100.

00%

2An expected inflation of 2. 00% is used for this period

3An expected inflation of 2. 92% is used for this period.

89

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

11. DEFINED BENEFIT PENSION PLAN, Continued Actuarial Methods and Assumptions

The following actuarial assumptions and methods were used to calculate the total pension liability as of

June 30, 2021:

Valuation Date June 30, 2020

Measurement Date June 30, 2021

Measurement Period July 1, 2020 to June 30, 2021

Discount Rate 7. 15%

Inflation 2. 50%

Salary Increase Varies by Entry Age and Service

Mortality Derived using specific CalPERS Membership Data for all Funds.

The mortality table used was developed based on CalPERS-specific data.

The table includes 15 years of mortality improvements using Society of

Actuaries Scale MP 2016. For more details on this table, please refer to the

December 2017 experience study report (based on CalPERS demographic

data from 1997 to 2015) that can be found on the CalPERS website.

Post Retirement Benefit Increase Contract COLA up to 2. 50% until Purchasing Power Protection Allowance

Floor on Purchasing Power applies.

All other actuarial assumptions used in the June 30, 2020 valuation can be obtained from CalPERS at their website at www. calpers. ca. gov under Forms and Publications.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate

The following presents the City’s proportionate share of the net pension liability, calculated using the discount rate of 7.15%, as well as what the City’s proportionate share of the net pension liability/(asset) would be if it were calculated using a discount rate that is 1-percentage point lower (6.15%) or 1-percentage point higher (8.15%) than the current rate:

Miscellaneous

Safety

Total

1% decrease

6. 15%

6. 15%

6. 15%

Net pension liability

$

2,485,903

$

3,403,543

$

5,889,446

Current discount rate

7. 15%

7. 15%

7. 15%

Net pension liability

$

1,177,421

$

1,582,318

$

2,759,739

1% increase

8. 15%

8. 15%

8. 15%

Net pension liability

$

95,717

$

86,406

$

182,123

90

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

11. DEFINED BENEFIT PENSION PLAN, Continued Pension Plan Fiduciary Net Position

Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. The plan’s fiduciary net position disclosed per the GASB Statement No. 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. For the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance and OPEB expense included as assets. These amounts are excluded for rate setting purposes in the City’s funding actuarial valuation. In addition, differences may result from early financial statement closing and final reconciled reserves.

12. OTHER POST-EMPLOYMENT BENEFITS (OPEB)

Plan Description

The City of Clayton Retired Employee Health Care Program is a single-employer defined benefit healthcare program administered by the City of Clayton. The program offers medical only (no dental) insurance benefits to eligible retirees and their families through the same self-insured program coverage to active City employees. In connection with this, the City has established a plan to provide post-employment benefits other than pensions as defined in California Public Employees' Retirement Law section 7500-7514. 5. The plan provides employees who retire directly from the City, at a minimum age of 50, with a minimum of five years of service, a cash subsidy for monthly medical insurance premiums to a cap of $149 per employee per month as of January 1, 2022. This monthly subsidy is the statutory minimum employer premium contribution under the California Public Employee’s Medical and Health Care Act (PEMHCA). To be eligible for this OPEB health coverage, employees must retire within 120 days of separation from employment with the City and also receive a monthly retirement warrant. Furthermore, to be eligible for retiree health benefits, the City of Clayton must still contract with CalPERS for health benefits. Once a retiree becomes eligible for Medicare, these benefits are integrated with the Medicare plan. Separate stand-alone audited financial statements are not issued for this plan.

Employees Covered

As of the June 30, 2022, the date of the latest actuarial valuation, the following current and former employees were covered by the benefit terms under the plan:

Active employees

27

Inactive employees or beneficiaries currently receiving benefits

9

Inactive employees entitled to, but not yet receiving benefits

-

Total employees

36

91

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

12. OTHER POST-EMPLOYMENT BENEFITS (OPEB), Continued Contributions

The City does not have an actuarially-determined contribution requirement as an irrevocable trust has not yet been established. The City currently administers the plan on a pay-as-you- go basis with nine (9) retirees currently receiving the PEMHCA minimum benefit. Total retiree OPEB premium payments, excluding the implicit rate subsidy of $13,410 were made by the City during the fiscal year ended June 30, 2022.

Net OPEB Liability

The City’s net OPEB liability was measured as of June 30, 2022 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2022 that was rolled forward to determine the June 30, 2022 total OPEB liability, based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal Level Percentage of Pay (AMM)

Discount Rate 4.09%

Inflation Rate 2.50%

Payroll Growth 2.80% wage inflation

Mortality Rate PubG. H-2010 Mortality Table – General

Funded Ratio 0.00%

Health Care Trend Rates Based on 2022 Getzen model with an initial rate of 7.00%,

gradually decreasing to an ultimate rate of 3.94% by 2075

Discount Rate

As of June 30, 2022, the City has not established a dedicated irrevocable trust to pay retiree healthcare benefits. Pursuant to GASBS 75, the discount rate should be a yield or index rate for 20-year, tax- exempt general obligation municipal bonds with an average rating of AA/Aa or higher (or equivalent quality on another rating scale) . A rate of 4.09% is used, with is the Standard & Poor’s Municipal Bond 20-Year High-Grade Rate Index as of June 30, 2022.

92

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

12. OTHER POST-EMPLOYMENT BENEFITS (OPEB), Continued

Changes in the OPEB Liability

The changes in the net OPEB liability for the plan are as follows:

Total OPEB

Plan Fiduciary

Net OPEB

Liability

Net Position

Liability

Balances as of July 1, 2021

$

532,528

$

-

$

532,528

Changes recognized for the measurement period:

Service Cost

18,942

-

18,942

Interest on total OPEB liability and service cost1

11,706

-

11,706

Changes of benefit terms

-

-

-

Difference between expected and actual experience

57,970

-

57,970

Changes of assumptions and other inputs

(13,653)

-

(13,653)

Employer contributions

-

29,178

(29,178)

Active and inactive employee contributions

-

-

-

Net investment income

-

-

-

Benefit payments2

(29,178)

(29,178)

-

Administrative expenses

-

-

-

Other changes

-

-

-

Net changes

45,787

-

45,787

Balances as of June 30, 2022

$

578,315

$

-

$

578,315

cost to the end of the

1Service costs prior to fiscla year ended June 30, 2022 already include interest

year

2Based on $15,766 in explicit benefit payments and estimated implicit subsidy payments of $

13,410.

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate

The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or higher than the current rate, as of the measurement June 30, 2022 date:

Current

1% Decrease

Discount Rate

1% Increase

(3.09%)

(4.09%)

(5.09%)

Net OPEB Liability

$

649,235

$

578,315

$

518,547

Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates

The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement the period ended June 30, 2022:

6.00%

7.00%

8.00%

decreasing to

decreasing to

decreasing to

Net OPEB Liability

2.94%

3.94%

4.94%

$ 511,513

$ 578,315

$ 659,190

93

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

12. OTHER POST-EMPLOYMENT BENEFITS (OPEB), Continued OPEB Plan Fiduciary Net Position

As the City has not established an irrevocable trust to pay retiree health care benefits, the plan has a fiduciary net position of $0 as of June 30, 2022.

Recognition of Deferred Outflows and Deferred Inflows of Resources

Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense over an assumed expected average remaining service lifetime (EARSL) of 10.70 years.

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB

For the fiscal year ended June 30, 2022, the City recognized OPEB expense of $74,942. The measurement date is the same as the fiscal year end date. Consequently, as of the fiscal year ended June 30, 2022, the City did not report deferred outflows and deferred inflows of resources related to OPEB from the following sources:

Net Deferred

Deferred Outflows

Deferred Inflows

Outflows /(Inflows)

Differences between actual and

of Resources

of Resources

of Resources

expected experiences

$

-

$

-

$

-

Changes in assumptions

-

-

-

Difference between expected and

actual earnings on OPEB

plan investments

-

-

-

Total

$

-

$

-

$

-

As an irrevocable trust for payment of retiree health benefits has not been established, there are no contributions subsequent to the measurement date to report, which would otherwise be recognized as a reduction of the net OPEB liability in the following fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Fiscal Year Ending

Deferred Outflows

June 30

/(Inflows) of Resources

2023

$

-

2024

-

2025

-

2026

-

2027

-

Thereafter

-

Total

$

-

94

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

13. REDEVELOPMENT SUCCESSOR AGENCY ACTIVITIES Background

On June 28, 2011, the California State Legislature adopted two pieces of legislation - AB IX 26 and AB IX 27 (the Bill) - that eliminated redevelopment agencies and provided cities with the opportunity to preserve their redevelopment agency if they agreed to make certain payments to the County Auditor Controller. On behalf of cities and redevelopment agencies throughout the State, the League of California Cities and California Redevelopment Association requested a stay on the implementation of both pieces of legislation and filed a lawsuit with the California Supreme Court challenging both pieces of legislation. The stay was rejected and on December 29, 2011, the Supreme Court validated AB IX 26 and overturned AB IX 27. Further, the Supreme Court indicated that all redevelopment agencies in the State of California were to be dissolved and cease operations as a legal entity as of February 1, 2012.

Under the new law, redevelopment agencies in the State of California cannot enter into new projects, obligations, or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished project that were subject to legally enforceable contractual commitments).

In fiscal years subsequent to the statutory dissolution date, successor agencies are only allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

The Bill directed the California State Controller to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller was required to order the available assets to be transferred to the public body designated as the Successor Agency by the Bill.

Amongst numerous requirements, AB IX 26 required the following:

  1. Subject to the control of a newly established oversight board, assets of the former redevelopment agency must be disposed expeditiously and property tax revenue generated by a former redevelopment agency can only be used to pay enforceable obligations (i. e. debt obligations and other third party contractual obligations);
  2. Either the city or another unit of local government may agree to serve as the “Successor Agency” to hold the net position until they are distributed to units of state and local government;
  3. Successor agencies may transfer housing functions of the former redevelopment agency to the appropriate entity; and
  4. Any property tax revenue in excess of enforceable obligations is to be distributed by county auditor controllers to taxing entities, which includes the City, as surplus property tax.

95

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

13. REDEVELOPMENT SUCCESSOR AGENCY ACTIVITIES, Continued Background, Continued

As a result of the restrictions placed on the assets and liabilities of the former redevelopment agency, they were transferred to a private purpose trust fund on February 1, 2012. Prior to the transfer, the Redevelopment Agency was treated as a blended component unit of the City until the fiscal year ending June 30, 2012. On January 11, 2012, the City Council elected to become the Successor Agency to the former Redevelopment Agency in accordance with AB IX 26 as part of City resolution number 03-2012.

Subsequent to the adoption of AB IX 26 and AB IX 27, the California State Legislature adopted AB 1484 in

June 2012. Among other things, AB 1484 required the following:

  1. A process to transfer housing assets of the former redevelopment agency to the entity designated to receive these assets. In the case of the City, assets with a total value of $14,057,320 and liabilities with a total value of $10,999,595 were transferred to the Successor Agency from the former Redevelopment Agency.
  2. Requirements that the Successor Agency must complete due diligence reviews (DDRs) of the assets of the former Low and Moderate Income Housing Fund and all other funds of the former redevelopment agency. The DDRs of the Clayton Successor Agency were finalized and approved by the Oversight Board on October 9, 2014 via Resolution No. 2014-04 and 2014-05. These reports concluded that payments of $887,404 and $3,791,725 are required to be remitted to Contra Costa County by the Redevelopment Successor Agency and Successor Housing Agency respectively.

The California Department of Finance (DOF) completed their review of the low and moderate income housing funds and issued a final determination letter to the City dated April 24, 2015 with no modifications. The Successor Housing Agency issued the payment specified by the DOF’s low and moderate housing funds determination letter in the fiscal year ending June 30, 2015, resulting in a net extraordinary loss of $3,616,725 for the year then ended.

On November 30, 2015, the DOF issued their final determination letter approving the all other funds DDR report with modifications. The modifications required an additional payment of $230,983 to the County Auditor-Controller, which was reported as an Extraordinary Loss of the City’s General Fund in the fiscal year ending June 30, 2016. The Successor Agency issued the payment specified by the DOF’s final all other funds determination letter to the County Auditor-Controller’s office in the fiscal year ending June 30, 2016, resulting in an extraordinary loss of $1,025,396 for the year then ended.

96

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

13. REDEVELOPMENT SUCCESSOR AGENCY ACTIVITIES, Continued Background, Continued

Upon the DOF’s approval of the DDRs, and the distribution of unobligated funds, the Successor Agency is authorized to apply for a “Finding of Completion”. The Finding of Completion enables the Successor Agency to transfer and sell land and buildings of the former Redevelopment Agency, subject to the review and approval of a Property Management Plan by the State Department of Finance. In addition by receiving the Finding of Completion, the City may establish loans between the City and the former Redevelopment Agency as enforceable obligations. The Clayton Successor Received its finding of completion from the DOF on December 30, 2015.

Successor Agency Assets and Liabilities

Cash and Investments

The total cash and investments balance of $526,807 is presented in a format consistent with GASBS 31 and is presented at fair value. Pursuant to AB IX 26 and AB 1484, all unencumbered cash balances have been previously distributed to the County Auditor-Controller for distribution to taxing entitles. See Note 2 for further information and disclosures regarding the City’s pooled cash and investments.

Inter-Agency Loans

Notes Receivable transferred from former RDA to Successor Agency, effective February 1, 2012:

The former RDA provided assistance to special assessment districts within the City, to fund repairs and improvements. The High Street Permanent Road Division and Oak Street Sewer Assessment District received loans from the former RDA to finance necessary infrastructure improvements. These loans are secured by special assessment property tax levies within the District’s boundaries. As of June 30, 2022, the outstanding balance of the loans due to the Successor Agency was $52,607.

97

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

13. REDEVELOPMENT SUCCESSOR AGENCY ACTIVITIES, Continued

Long-Term Debt

The following is a summary of changes in long-term debt transactions for the year ended June 30, 2022:

Balance

Balance

Due in one

2014 Tax Refunding

July 1, 2021

Additions

Deletions

June 30, 2022

year

Allocation Bonds

$ 1,145,000

$

-

$

-

$

1,145,000

$

375,000

Total

$

1,145,000

$ 1,145,000

$

-

$

-

$

375,000

2014 Refunding Tax Allocation Bonds

Refunding Tax Allocation Bonds, Series 2014, in the principal amount of $3,790,000 were issued on June 25, 2014 by the Successor Agency. Principal payments are payable on August 1 of each year, beginning on August 1, 2015. Interest payments are payable semi- annually on February 1 and August 1. The bonds are special obligations of the Successor Agency and are secured by the Successor Agency’s tax increment revenue.

The 2014 refunding was exercised in order to take advantage of more favorable interest rates. The refunding decreased the City’s total debt service payments by approximately $601,895. The transaction resulted in economic gain (difference between present value of the debt service on the old and new bonds) of approximately $580,184. For the current year, principal and interest paid were $0 and $30,475, respectively. The current year principal payment was made in advance, during the year ended June 30, 2021.

The annual debt service requirements to amortize the Successor Agency’s 2014 Refunding Tax Allocation Bonds outstanding at June 30, 2022, were as follows:

Fiscal Year

Ending

June 30

Principal

Interest

Total

2023

$

375,000

$

22,023

$

397,023

2024

380,000

13,340

393,340

2025

390,000

4,484

394,484

Total

$

1,145,000

$

39,847

$

1,184,847

98

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

14. EQUITY BALANCES

Governmental Fund Balances

Fund balances are presented in the following categories: non-spendable, restricted, committed, assigned and unassigned (see Note 1 for a description of these categories). A detailed schedule of fund balances at June 30, 2022 is as follows:

Major Funds

Landscape

Succesor

American

Capital

Other

General

Maintenance

Housing

Rescue

Improvement

Governmental

Fund

District

Agency

Plan Act*

Program

Funds

Total

Fund Balance Classifications

Nonspendable for:

Due from other funds

$

120,893

$

-

$

-

$

-

$

-

$

-

$

120,893

Prepaid expenses

52,578

-

-

-

-

-

52,578

Total

173,471

-

-

-

-

-

173,471

Restricted for:

Affordable housing

-

-

5,617,695

-

-

-

5,617,695

Public landscaping

-

32,509

-

-

-

-

32,509

Grant-funded programs

-

-

-

-

-

279,818

279,818

The Grove Park (CFD 2006-1)

-

-

-

-

-

423,008

423,008

Stormwater compliance

-

-

-

-

-

28,243

28,243

Neighborhood street lighting

-

-

-

-

-

23,281

23,281

Transportation

-

-

-

-

-

315,041

315,041

Total

-

32,509

5,617,695

-

-

1,069,391

6,719,595

Committed for:

Rainy Day

145,620

-

-

-

-

-

145,620

Pandemic recovery reserve

349,399

-

-

-

-

-

349,399

Presley settlement

-

-

-

-

-

39,478

39,478

Geological hazard prevention

and repair

-

-

-

-

-

51,173

51,173

Development impact

-

-

-

-

-

619,151

619,151

Total

495,019

-

-

-

-

709,802

1,204,821

Assigned for:

Next year's budget

-

606,024

-

-

-

117,685

723,709

Capital projects

-

-

-

-

2,606,444

-

2,606,444

Total

-

606,024

-

-

2,606,444

117,685

3,330,153

Unassigned

5,744,867

-

-

-

-

-

5,744,867

Total Fund Balance

$

6,413,357

$

638,533

$

5,617,695

$

-

$

2,606,444

$

1,896,878

$

17,172,907

*During the year ended June 30, 2022, the City established the American Rescue Plan Act (ARPA) fund to accounts for those federal monies received. Due to the specific nature of expenditures associated with ARPA, those funds are tracked and shown as committed in the General Fund.

During the year ended June 30, 2021, the City established a Rainy Day Fund. This fund was established to capture any annual surplus identified through the annual financial audit that the City Council wishes to earmark for future allocation to one-time purposes. Funds are tracked and shown as committed in the General Fund.

99

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

14. EQUITY BALANCES, Continued

Governmental Fund Balances, Continued

The Pandemic Recovery Reserve was established by the City Council to capture programmatic funding decisions associated with the American Rescue Plan Act funds the City has received. For the initial tranche of $1,467,024 (and planned for the tranche to be received in July 2022), the City Council has chosen to transfer the funds to the City's General Fund to pay for public safety services. This funding for public safety then allows the transfer of an equal amount from the General Fund to the Pandemic Recovery Reserve. The funds in the Pandemic Recovery Reserve can be used for any valid general government purpose.

Net Position

The restricted component of net position includes assets subject to constraints either (1) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or (2) imposed by law through constitutional provisions or enabling legislation. The restricted component of net position at June 30, 2022 for governmental activities includes:

Restricted for community and economic development:

Affordable housing

$

8,788,148

Restricted for public works:

Public landscaping (CFD 2007-1)

32,509

Stormwater state mandate compliance

28,243

Neighborhood street lighting

23,281

Transportation

324,585

Restricted for general government:

Grant-funded programs

240,021

Restricted for parks and recreation:

The Grove Park (CFD 2006-1)

423,008

Restricted for public safety:

30,253

Total restricted net position

$

9,890,048

100

City of Clayton

Notes to Basic Financial Statements

For the year ended June 30, 2022

15. PRIOR PERIOD RESTATEMENT

During the year ended June 30, 2022, it was noted that tax revenue recognized during the year was earned during the year ended June 30, 2021. A restatement in the amount of $54,912 was made to recognize the revenue in the correct (prior) fiscal year. This restatement affected the ending fund balance/net position at June 30, 2021 as follows:

Balance at June 30, 2021, as previously

stated

Restatement

Balance at June 30, 2021, as restated

Fund Balance

of

General Fund

$ 6,108,981

54,912

$ 6,163,893

Net Position

of

Governmental

Activities

$ 44,443,106

54,912

$ 44,498,018

101

REQUIRED SUPPLEMENTARY INFORMATION

102

City of Clayton

Required Supplementary Information

For the year ended June 30, 2022

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budgetary Comparison Schedule - General Fund

Variance from

Adopted

Final Budget

Final

Positive

REVENUES

Budget

Budget

Actual

(Negative)

Property taxes

$

2,660,603

$

2,660,603

$

2,846,766

$

186,163

Sales and use taxes

585,965

585,965

563,908

(22,057)

Business licenses

150,000

150,000

162,881

12,881

Permits, licenses and fees

137,354

137,354

114,026

(23,328)

Fines, forfeitures and penalties

118,800

118,800

151,409

32,609

Intergovernmental

117,451

117,451

135,233

17,782

Other in-lieu fees

174,389

174,389

174,443

54

Franchise fees

577,693

577,693

587,740

10,047

Service charges

309,366

309,366

305,645

(3,721)

Use of money and property

86,000

86,000

(185,018)

(271,018)

Other revenue

20,000

20,000

40,844

20,844

Total Revenues

4,937,621

4,937,621

4,897,877

(39,744)

EXPENDITURES

Current:

General government

1,318,585

1,318,585

2,570,417

(1,251,832)

Public works

335,964

335,964

333,423

2,541

Parks and recreation services

306,500

306,500

336,592

(30,092)

Community and economic development

319,716

319,716

299,175

20,541

Public safety

2,518,022

2,518,022

2,684,319

(166,297)

Capital Outlay

-

-

22,168

(22,168)

Total Expenditures

4,798,787

4,798,787

6,246,094

(1,447,307)

Revenues Over (Under) Expenditures

138,834

138,834

(1,348,217)

(1,487,051)

OTHER FINANCING SOURCES (USES)

Transfers in

125,629

125,629

1,597,681

1,472,052

Transfers out

-

-

-

-

Total Other Financing Sources (Uses)

125,629

125,629

1,597,681

1,472,052

Change in fund balance

$

264,463

$

264,463

249,464

$

(14,999)

FUND BALANCE

Beginning of year

6,163,893

End of year

$

6,413,357

103

City of Clayton

Required Supplementary Information

For the year ended June 30, 2022

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budgetary Comparison Schedule - Landscape Maintenance District

Variance from

Final Budget

Adopted

Final

Positive

REVENUES

Budget

Budget

Actual

(Negative)

Special parcel tax

$

1,204,857

$

1,204,957

$

1,204,882

$

(75)

Use of money and property

15,000

15,000

(24,383)

(39,383)

Other revenue

-

-

-

Total Revenues

1,219,857

1,219,957

1,180,499

(39,458)

EXPENDITURES

Current:

Public works

2,073,579

2,073,579

1,424,676

648,903

Capital Outlay

-

-

161,367

(161,367)

Total Expenditures

2,073,579

2,073,579

1,586,043

487,536

Revenues Over (Under) Expenditures

(853,722)

(853,622)

(405,544)

448,078

OTHER FINANCING SOURCES (USES)

Transfers out

(41,809)

(41,809)

(41,809)

-

Total Other Financing Sources (Uses)

(41,809)

(41,809)

(41,809)

-

Change in fund balance

$

(895,531)

$

(895,431)

(447,353)

$

448,078

FUND BALANCE

Beginning of year

1,085,886

End of year

$

638,533

104

City of Clayton

Required Supplementary Information

For the year ended June 30, 2022

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budgetary Comparison Schedule - Successor Housing Agency

Variance from

Final Budget

Adopted

Final

Positive

REVENUES

Budget

Budget

Actual

(Negative)

Program income

$

111,400

$

111,400

$

111,400

$

-

Use of money and property

22,000

22,000

17,961

(4,039)

Total Revenues

133,400

133,400

129,361

(4,039)

EXPENDITURES

Current:

Community and economic development

20,000

20,000

-

20,000

Total Expenditures

20,000

20,000

-

20,000

Revenues Over (Under) Expenditures

113,400

113,400

129,361

15,961

OTHER FINANCING SOURCES (USES)

Unrealized gains (losses)

-

-

58,091

58,091

Total Other Financing Sources (Uses)

-

-

58,091

58,091

Change in fund balance

$

113,400

$

113,400

187,452

$

74,052

FUND BALANCE

Beginning of year

5,430,243

End of year

$

5,617,695

105

City of Clayton

Required Supplementary Information

For the year ended June 30, 2022

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budgetary Comparison Schedule - American Rescue Plan Act

Variance from

Final Budget

Adopted

Final

Positive

REVENUES

Budget

Budget

Actual

(Negative)

Program income

$

-

$

-$

-

$

-

Intergovernmental

-

-

1,467,024

1,467,024

Total Revenues

-

-

1,467,024

1,467,024

EXPENDITURES

Current:

Community and economic development

-

-

-

-

Total Expenditures

-

-

-

-

Revenues Over (Under) Expenditures

-

-

1,467,024

1,467,024

OTHER FINANCING SOURCES (USES)

Transfers out

-

-

(1,467,024)

(1,467,024)

Total Other Financing Sources (Uses)

-

-

(1,467,024)

(1,467,024)

Change in fund balance

$

-

$

-

-

$

-

FUND BALANCE

Beginning of year

-

End of year

$

-

106

City of Clayton

Required Supplementary Information

For the Year Ended June 30, 2022

Schedule of Proportionate Share of Net Pension Liability

Last 10 Years*

Fiscal Year Ending June 30*

2022

2021

2020

2019

2018

2017

2016

2015

Measurement Date

6/30/2021

6/30/2020

6/30/2019

6/30/2018

6/30/2017

6/30/2016

6/30/2015

6/30/2014

Plan’s Proportion of the Net Pension Liability/(Asset)

0.051030%

0.048970%

0.047570%

0.048490%

0.049420%

0.051003%

0.052357%

0.030626%

Plan’s Proportionate Share of the Net Pension Liability/(Asset)

$

2,759,739

$

5,328,676

$

4,874,908

$

4,672,754

$

4,901,330

$

4,413,357

$

3,593,771

$

3,693,394

Plan’s Covered-Employee Payroll**

$

2,252,998

$

2,064,898

$

2,016,021

$

1,995,400

$

1,931,042

$

1,820,066

$

1,706,509

$

1,963,054

Plan’s Proportionate Share of the Net Pension Liability/(Asset)

as a Percentage of its Covered-Employee Payroll

122.49%

258.06%

241.81%

234.18%

253.82%

242.48%

210.59%

188.15%

Plan’s Proportionate Share of the Fiduciary Net Position as a

Percentage of the Plan’s Total Pension Liability

88.23%

75.10%

75.26%

76.24%

73.86%

74.06%

78.40%

77.60%

107

City of Clayton

Required Supplementary Information

For the Year Ended June 30, 2022

Schedule of Pension Plan Contributions

Last 10 Years*

June 30,

2022

2021

2020

2019

2018

2017

2016

2015

Actuarially determined contributions*

$

584,865

$

412,971

$

577,734

$

530,067

$

612,898

$

573,677

$

530,677

$

375,647

Contributions in relation to the actuarially determined contribution

584,865

412,971

577,734

530,067

612,898

573,677

530,677

375,647

Contribution deficiency (excess)

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Covered-employee payroll**

$

2,252,998

$

2,244,193

$

2,064,898

$

2,016,021

$

1,995,400

$

1,931,042

$

1,820,066

$

1,706,509

Contributions as a percentage of covered

employee payroll

25.96%

18.40%

27.98%

26.29%

30.72%

29.71%

29.16%

22.01%

* Excludes employer-paid member contributions (EPMC)

** For the fiscal year ending on the date shown

Actuarially determined contribution assumptions:**

June 30, 2020

Valuation Date

Actuarial cost method

Entry age normal cost method

Amortization method

Level percent of pay, direct rate smoothing

Remaining amortization periods

Differs by employer rate plan but not more than 20 years

Asset valuation method

Market value of assets

Inflation

2.50%

Salary increases

Varies by entry age and service

Overall payroll growth

2.75% compounded annually

Discount rate***

7.00% (net of administrative expenses)

Mortality

Derived using CalPERS' Membership Data for all Funds. The post-retirement mortality rates

include 15 years of projected on-going mortality improvement using 90 percent of Scale MP 2016

published by the Society of Actuaries.

https://www.calpers.ca.gov/docs/forms-publications/actuarial-valuation-section2-miscellaneous-2017.pdf

https://www.calpers.ca.gov/docs/forms-publications/actuarial-valuation-section2-safety-2017.pdf

*** The discount rate used for Actuarially Determined Contributions (ARC) is different from the one used for Total Pension Liability.

108

City of Clayton

Required Supplementary Information

For the Year Ended June 30, 2022

Schedule of Changes in the Net OPEB Liability and Related Ratios

Last 10 Years*

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Ended

Ended

Ended

Ended

Ended

June 30, 2022

June 30, 2021

June 30, 2020

June 30, 2019

June 30, 2018

Measurement Date

6/30/2022

6/30/2021

6/30/2020

6/29/2019

6/29/2018

Total OPEB Liability:

Total OPEB liability - Beginning

$

532,528

$

535,900

$

570,116

$

545,327

$

464,490

Changes recognized for the measurement period:

Service cost 2

18,942

18,521

21,745

28,428

27,530

Interest on total OPEB liability

11,706

13,536

15,090

15,783

15,800

Changes of benefit terms

-

-

-

-

45,605

Difference between expected and actual experience

57,970

-

(11,405)

-

22,654

Changes of assumptions and other inputs

(13,653)

18,602

(4,186)

9,159

16,307

Benefit payments 1

(29,178)

(54,031)

(58,507)

(31,408)

(30,226)

Other changes

-

-

3,047

2,827

(16,833)

Net change in total OPEB liability

45,787

(3,372)

(34,216)

24,789

80,837

Total OPEB liability - Ending

578,315

532,528

535,900

570,116

545,327

Plan Fiduciary Net Position:

Plan fiduciary net position - Beginning

$

-

$

-

$

-

$

-

$

-

Changes recognized for the measurement period:

Contributions - Employer

29,178

-

-

-

-

Net investment income

-

-

-

-

-

Benefit payments

(29,178)

-

-

-

-

Administrative expense

-

-

-

-

-

Net change in plan fiduciary net position

-

-

-

-

-

Plan fiduciary net position - Ending 3

-

-

-

-

-

Net OPEB Liability - Ending

$

578,315

$

532,528

$

535,900

$

570,116

$

545,327

Plan Fiduciary net position as a percentage of the

total OPEB liability

0.00%

0.00%

0.00%

0.00%

0.00%

Covered-employee payroll

$

2,361,666

$

2,244,193

$

2,307,289

$

2,016,021

$

1,995,400

Net OPEB liability as a percentage of covered

employee payroll

24.49%

23.73%

23.23%

28.28%

27.33%

1 Includes the implicit rate subsidy.

2 Service costs prior to fiscal year 2021/22 already include interest cost to the end of the year.

3 As of the year ended June 30, 2022 the City had not established an irrevocable trust for payment of OPEB plan benefits.

109

City of Clayton

Required Supplementary Information

For the Year Ended June 30, 2022

Schedule of OPEB Plan Contributions

Last 10 Years*

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Ended

Ended

Ended

Ended

Ended

June 30, 2022

June 30, 2021

June 30, 2020

June 30, 2019

June 30, 2018

Actuarially determined contributions (ADC) 1

$

-

$

-

$

-

$

-

$

-

Contributions in relation to the ADC

-

-

-

-

-

Contribution deficiency (excess)

$

-

$

-

$

-

$

-

$

-

Covered-employee payroll 2

$

2,361,666

$

2,244,193

$

2,307,289

$

2,016,021

$

1,995,400

Contributions as a percentage of covered-employee payroll

0.00%

0.00%

0.00%

0.00%

0.00%

1 As of the year ended June 30, 2022 the City had not established an irrevocable trust for payment of OPEB plan benefits. 2 For the fiscal year ending on the date shown

110

City of Clayton

Notes to the Required Supplementary Information

For the year ended June 30, 2022

1. BUDGETARY PRINCIPLES

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

By June 30, the City Manager submits to the City Council a proposed operating budget for the year commencing July 1. The operating budget includes proposed expenditures and the means of financing them. Continuing appropriations are re-budgeted by the City Council as part of the adoption of subsequent year's budgets.

Public hearings are conducted to obtain taxpayer comments.

The budget is legally enacted through passage of a resolution during a City Council meeting in the month of June.

The City Manager is authorized to transfer budgeted amounts within an activity, within any fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council.

Formal budgeting is employed as a management control device during the year for the general, certain special revenue and debt service funds. The Presley Settlement, Stormwater Treatment District Assessment, and Clayton Development Impact Fees funds are not budgeted for and thus do not have budget to actual comparison statements.

Budgets for the general, certain special revenue and debt service funds are adopted on a basis consistent with generally accepted accounting principles (US GAAP).

Budgets for capital projects funds are adopted on a project-life basis.

Budgeted amounts are as originally adopted or as amended by the City Council. Budget amendments were not material in relation to the original appropriations.

2. PENSION AND OTHER POSTEMPLOYMENT BENEFITS

This information is intended to help users assess the City’s Pension and Other Postemployment Benefits (OPEB) plan’s status on a going-concern basis, assess progress made in accumulating assets to pay benefits when due, and make comparisons with other public employers.

111

SUPPLEMENTARY INFORMATION

112

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113

City of Clayton

Supplementary Information

Major Governmental Fund Budgetary Comparison Schedule

For the year ended June 30, 2022

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budgetary Comparison Schedule - Capital Improvement Program

Variance from

Final Budget

Adopted

Final

Positive

REVENUES

Budget

Budget

Actual

(Negative)

Intergovernmental

$

27,375

$

1,018,000

$

-

$

(1,018,000)

Program income

-

-

-

-

Use of money and property

22,500

22,500

(80,986)

(103,486)

Total Revenues

49,875

1,040,500

(80,986)

(1,121,486)

EXPENDITURES

Capital outlay

342,542

1,441,719

869,925

571,794

Total Expenditures

342,542

1,441,719

869,925

571,794

Revenues Over (Under) Expenditures

(292,667)

(401,219)

(950,911)

(549,692)

OTHER FINANCING SOURCES (USES)

Transfers in

1,227,829

793,877

1,632,609

838,732

Transfers out

-

-

-

-

Total Other Financing Sources (Uses)

1,227,829

793,877

1,632,609

838,732

Change in fund balance

$

935,162

$

392,658

681,698

$

289,040

FUND BALANCE

Beginning of year

1,924,746

End of year

$

2,606,444

114

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115

NON-MAJOR GOVERNMENTAL FUNDS

Non-Major Special Revenue Funds:

Development Impact Fees - Accounts for projects funded with the development impact fees.

Gas Tax HUTA - Accounts for taxes raised under Street and Highway Code Sections 2106, 2107 and 2107. 5, used for the maintenance and construction of City streets.

Gas Tax RMRA - Accounts for taxes raised under Road Maintenance and Rehabilitation Account (SB1), used for the maintenance and construction of City streets.

Grants - Accounts for grants received for specific programs and projects.

The Grove Park District - Accounts for voter-approved real property special parcel taxes restricted for the operation, maintenance, repair and replacement landscaping, irrigation, hardscaping, lighting, public restroom, gazebo, and playground equipment for “The Grove Park” in the downtown area.

Measure J - Accounts for a $0. 05 sales tax extended by voters in 2004 to provide transportation and street improvements, a growth management process, and a regional planning process to address quality of life issues. A portion of their county wide voter-approved tax is returned to local governments.

Neighborhood Street Lighting District - Accounts for assessments collected to maintain residential street lighting within the defined benefit assessment district boundaries.

Oakhurst Geological Hazard Abatement District - Accounts for voter-approved real property assessments collected from Oakhurst parcels to provide preventive maintenance measures and to mitigate potential landslides and other hazardous geological conditions within the benefit assessment district boundaries.

Presley Settlement - Accounts for litigation settlement proceeds restricted for specific programs and projects.

Stormwater Assessment District - Accounts for real property assessments collected to comply with the National Pollution Discharge Elimination System (NPDES).

Stormwater Treatment Assessment District - This fund was formed to provide a mechanism for the levying of private development (property) benefit assessments to fund the cost of inspections, maintenance and capital improvements related to the stormwater treatment requirements imposed upon the City by the Regional Water Quality Control Board as part of the City's General Stormwater Discharge Permit.

116

City of Clayton

Supplementary Information

Combining Balance Sheets - Non-major Governmental Funds

June 30, 2022

Special Revenue

The Grove

Development

Gas Tax

Gas Tax

Park

ASSETS

Impact Fees

HUTA

RMRA

Grants

District

Cash and investments

$

631,187

$

37,569

$

237,288

$

204,850

$

430,437

Accounts receivable

-

20,984

20,008

68,643

-

Total Assets

$

631,187

$

58,553

$

257,296

$

273,493

$

430,437

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

Liabilities:

Accounts payable

$

12,036

$

808

$

-

$

3,219

$

4,729

Other payables

-

-

-

-

2,700

Unearned revenue

-

-

-

-

-

Due to other funds

-

-

-

-

-

Advance from other funds

-

-

-

-

-

Total Liabilities

12,036

808

-

3,219

7,429

Fund Balance:

57,745

257,296

270,274

423,008

Restricted

-

Committed

619,151

-

-

-

-

Assigned

-

-

-

-

-

Unassigned

-

-

-

-

-

Total Fund Balance

619,151

57,745

257,296

270,274

423,008

Total Liabilities, Deferred Inflows

$

631,187

$

58,553

$

257,296

$

273,493

$

430,437

of Resources and Fund Balances

117

City of Clayton

Supplementary Information

Combining Balance Sheets - Non-major Governmental Funds

June 30, 2022

Special Revenue

Oakhurst

Geological

Neighborhood

Hazard

Total Other

Street Lighting

Abatement

Presley

Stormwater

Governmental

Measure J

District

District

Settlement

Assessment

Funds

$

9,544

$

25,771

$

78,044

$

90,470

$

24,555

$

1,769,715

332,166

-

-

-

45,220

487,021

$

341,710

$

25,771

$

78,044

$

90,470

$

69,775

$

2,256,736

$

-

$

2,450

$

1,750

$

-

$

-

$

24,992

-

-

-

-

-

2,700

332,166

-

-

-

-

332,166

-

-

-

-

-

-

-

-

-

-

-

-

332,166

2,450

1,750

-

-

359,858

9,544

23,281

-

-

28,243

1,069,391

-

-

51,173

39,478

-

709,802

-

40

25,121

50,992

41,532

117,685

-

-

-

-

-

-

9,544

23,321

76,294

90,470

69,775

1,896,878

$

341,710

$

25,771

$

78,044

$

90,470

$

69,775

$

2,256,736

118

City of Clayton

Supplementary Information

Combining Statement of Revenues, Expenditures and Changes in Fund Balances

Non-major Governmental Funds - For the year ended June 30, 2022

Special Revenue

The Grove

Development

Gas Tax

Gas Tax

Park

REVENUES

Impact Fees

HUTA

RMRA

Grants

District

Special parcel taxes and assessments

$

-

$

44,633

$

-

$

-

$

143,775

Permits, licenses and fees

76,140

-

-

-

4,763

Intergovernmental

-

271,990

225,214

297,952

-

Use of money and property

(18,973)

(4,150)

(3,952)

(4,023)

(13,489)

Other revenue

-

-

-

-

648

Total Revenues

57,167

312,473

221,262

293,929

135,697

EXPENDITURES

Current:

General government

-

-

-

126,650

-

Public works

-

125,491

-

-

-

Parks and recreation services

-

-

-

-

140,808

Community and economic development

-

-

-

-

-

Public safety

-

-

-

130,541

-

Capital outlay

-

-

-

20,236

28,653

Total Expenditures

-

125,491

-

277,427

169,461

Revenues Over (Under) Expenditures

57,167

186,982

221,262

16,502

(33,764)

OTHER FINANCING SOURCES (USES)

-

-

-

-

-

Transfers in

Transfers out

-

(639,009)

(584,883)

(5,036)

(8,273)

Total Other Financing Sources (Uses)

-

(639,009)

(584,883)

(5,036)

(8,273)

Net change in fund balances

57,167

(452,027)

(363,621)

11,466

(42,037)

FUND BALANCES

Beginning of year

561,984

509,772

620,917

258,808

465,045

End of year

$

619,151

$

57,745

$

257,296

$

270,274

$

423,008

119

City of Clayton

Supplementary Information

Combining Statement of Revenues, Expenditures and Changes in Fund Balances

Non-major Governmental Funds - For the year ended June 30, 2022

Special Revenue

Oakhurst

Geological

Neighborhood

Hazard

Total Other

Street Lighting

Abatement

Presley

Stormwater

Governmental

Measure J

District

District

Settlement

Assessment

Funds

$

-

$

125,991

$

44,814

$

-

$

83,017

$

442,230

-

-

-

-

59,423

140,326

374,885

-

-

-

-

1,170,041

(981)

(1,044)

(2,282)

(2,918)

(678)

(52,490)

-

-

-

-

-

648

373,904

124,947

42,532

(2,918)

141,762

1,700,755

-

-

-

-

-

126,650

28,349

139,489

9,813

-

80,214

383,356

-

-

-

-

-

140,808

-

-

-

-

-

-

-

-

-

-

-

130,541

-

-

-

-

-

48,889

28,349

139,489

9,813

-

80,214

830,244

345,555

(14,542)

32,719

(2,918)

61,548

870,511

-

-

20,084

-

1,130

21,214

(422,254)

(13,006)

(8,160)

(20,084)

(41,966)

(1,742,671)

(422,254)

(13,006)

11,924

(20,084)

(40,836)

(1,721,457)

(76,699)

(27,548)

44,643

(23,002)

20,712

(850,946)

86,243

50,869

31,651

113,472

49,063

2,747,824

$

9,544

$

23,321

$

76,294

$

90,470

$

69,775

$

1,896,878

A group of black lines  Description automatically generated with medium confidence

120

City of Clayton

Supplementary Information

Non-Major Governmental Funds

For the year ended June 30, 2022

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budgetary Comparison Schedule - Development Impact Fees

Variance from

Final Budget

Adopted

Final

Positive

REVENUES

Budget

Budget

Actual

(Negative)

$

-

$

-

$

76,140

$

76,140

Permits, licenses and fees

Use of money and property

8,000

8,000

(18,973)

(26,973)

Total Revenues

8,000

8,000

57,167

49,167

EXPENDITURES

Current:

-

-

-

-

Public safety

Capital Outlay

-

-

-

-

Total Expenditures

-

-

-

-

Revenues Over (Under) Expenditures

8,000

8,000

57,167

49,167

OTHER FINANCING SOURCES (USES)

Transfers out

-

-

-

-

Total Other Financing Sources (Uses)

-

-

-

-

Change in fund balance

$

8,000

$

8,000

57,167

$

49,167

FUND BALANCE

Beginning of year

561,984

End of year

$

619,151

121

City of Clayton

Supplementary Information

Non-Major Governmental Funds

For the year ended June 30, 2022

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budgetary Comparison Schedule - Gas Tax HUTA

Variance from

Final Budget

Adopted

Final

Positive

REVENUES

Budget

Budget

Actual

(Negative)

Special parcel taxes and assessments

$

42,000

$

42,000

$

44,633

$

2,633

Intergovernmental

279,884

279,884

271,990

(7,894)

Use of money and property

3,000

3,000

(4,150)

(7,150)

Other revenue

-

-

-

-

Total Revenues

324,884

324,884

312,473

(12,411)

EXPENDITURES

Public works

190,494

190,494

125,491

65,003

Total Expenditures

190,494

190,494

125,491

65,003

Revenues Over (Under) Expenditures

134,390

134,390

186,982

52,592

OTHER FINANCING SOURCES (USES)

Transfers out

(158,285)

(158,285)

(639,009)

(480,724)

Total Other Financing Sources (Uses)

(158,285)

(158,285)

(639,009)

(480,724)

Change in fund balance

$

(23,895)

$

(23,895)

(452,027)

$

(428,132)

FUND BALANCE

Beginning of year

509,772

End of year

$

57,745

122

City of Clayton

Supplementary Information

Non-Major Governmental Funds

For the year ended June 30, 2022

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budgetary Comparison Schedule - Gas Tax RMRA

Variance from

Final Budget

Adopted

Final

Positive

REVENUES

Budget

Budget

Actual

(Negative)

Property taxes

$

-

$

-

$

-

$

-

Intergovernmental

217,787

207,959

225,214

17,255

Use of money and property

4,200

4,200

(3,952)

(8,152)

Total Revenues

221,987

212,159

221,262

9,103

EXPENDITURES

Public works

-

-

-

-

Total Expenditures

-

-

-

-

Revenues Over (Under) Expenditures

221,987

212,159

221,262

9,103

OTHER FINANCING SOURCES (USES)

Transfers out

(445,000)

(359,147)

(584,883)

(225,736)

Total Other Financing Sources (Uses)

(445,000)

(359,147)

(584,883)

(225,736)

Change in fund balance

$

(223,013)

$

(146,988)

(363,621)

$

(216,633)

FUND BALANCE

Beginning of year

620,917

End of year

$

257,296

123

City of Clayton

Supplementary Information

Non-Major Governmental Funds

For the year ended June 30, 2022

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budgetary Comparison Schedule - Grants

Variance from

Final Budget

Adopted

Final

Positive

REVENUES

Budget

Budget

Actual

(Negative)

Intergovernmental

$

517,060

$

517,060

$

297,952

$

(219,108)

Use of money and property

4,220

4,220

(4,023)

(8,243)

Total Revenues

521,280

521,280

293,929

(227,351)

EXPENDITURES

Current:

General government

40,700

40,700

126,650

(85,950)

Public safety

164,123

164,123

130,541

33,582

Capital outlay

82,800

82,800

20,236

62,564

Total Expenditures

287,623

287,623

277,427

10,196

Revenues Over (Under) Expenditures

233,657

233,657

16,502

(217,155)

OTHER FINANCING SOURCES (USES)

Transfers out

(95,000)

(95,000)

(5,036)

89,964

Total Other Financing Sources (Uses)

(95,000)

(95,000)

(5,036)

89,964

Change in fund balance

$

138,657

$

138,657

11,466

$

(127,191)

FUND BALANCE

Beginning of year

258,808

End of year

$

270,274

124

City of Clayton

Supplementary Information

Non-Major Governmental Funds

For the year ended June 30, 2022

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budgetary Comparison Schedule - The Grove Park District

Variance from

Final Budget

Adopted

Final

Positive

REVENUES

Budget

Budget

Actual

(Negative)

Special parcel taxes and assessments

$

143,796

$

143,796

$

143,775

$

(21)

Permits, licenses and fees

-

-

4,763

4,763

Use of money and property

6,400

6,400

(13,489)

(19,889)

Other revenue

-

-

648

648

Total Revenues

150,196

150,196

135,697

(14,499)

EXPENDITURES

Current:

109,196

109,196

140,808

(31,612)

Parks and recreation services

Capital Outlay

99,700

99,700

28,653

71,047

Total Expenditures

208,896

208,896

169,461

39,435

Revenues Over (Under) Expenditures

(58,700)

(58,700)

(33,764)

24,936

OTHER FINANCING SOURCES (USES)

Transfers out

(8,273)

(8,273)

(8,273)

-

Total Other Financing Sources (Uses)

(8,273)

(8,273)

(8,273)

-

Change in fund balance

$

(66,973)

$

(66,973)

(42,037)

$

24,936

FUND BALANCE

Beginning of year

465,045

End of year

$

423,008

125

City of Clayton

Supplementary Information

Non-Major Governmental Funds

For the year ended June 30, 2022

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budgetary Comparison Schedule - Measure J

Variance from

Final Budget

Adopted

Final

Positive

REVENUES

Budget

Budget

Actual

(Negative)

Intergovernmental

$

270,276

$

270,276

$

374,885

$

104,609

Use of money and property

900

900

(981)

(1,881)

Total Revenues

271,176

271,176

373,904

102,728

EXPENDITURES

Current:

Public works

32,000

32,000

28,349

3,651

Total Expenditures

32,000

32,000

28,349

3,651

Revenues Over (Under) Expenditures

239,176

239,176

345,555

106,379

OTHER FINANCING SOURCES (USES)

Transfers out

(5,076)

(5,076)

(422,254)

(417,178)

Total Other Financing Sources (Uses)

(5,076)

(5,076)

(422,254)

(417,178)

Change in fund balance

$

234,100

$

234,100

(76,699)

$

(310,799)

FUND BALANCE

Beginning of year

86,243

End of year

$

9,544

126

City of Clayton

Supplementary Information

Non-Major Governmental Funds

For the year ended June 30, 2022

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budgetary Comparison Schedule - Neighborhood Street Lighting District

Variance from

Adopted

Final Budget

Final

Positive

REVENUES

Budget

Budget

Actual

(Negative)

Special parcel taxes and assessments

$

125,991

$

125,991

$

125,991

$

-

Use of money and property

800

800

(1,044)

(1,844)

Total Revenues

126,791

126,791

124,947

(1,844)

EXPENDITURES

Current:

Public works

149,360

149,360

139,489

9,871

Total Expenditures

149,360

149,360

139,489

9,871

Revenues Over (Under) Expenditures

(22,569)

(22,569)

(14,542)

8,027

OTHER FINANCING SOURCES (USES)

Transfers out

(13,006)

(13,006)

(13,006)

-

Total Other Financing Sources (Uses)

(13,006)

(13,006)

(13,006)

-

Change in fund balance

$

(35,575)

$

(35,575)

(27,548)

$

8,027

FUND BALANCE

Beginning of year

50,869

End of year

$

23,321

127

City of Clayton

Supplementary Information

Non-Major Governmental Funds

For the year ended June 30, 2022

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budgetary Comparison Schedule - Oakhurst Geological Hazard and Abatement District

Variance from

Final Budget

Adopted

Final

Positive

REVENUES

Budget

Budget

Actual

(Negative)

Special parcel taxes and assessments

$

44,894

$

44,897

$

44,814

$

(83)

Use of money and property

210

210

(2,282)

(2,492)

Total Revenues

45,104

45,107

42,532

(2,575)

EXPENDITURES

Current:

Public works

120,212

120,212

9,813

110,399

Capital outlay

-

-

-

-

Total Expenditures

120,212

120,212

9,813

110,399

Revenues Over (Under) Expenditures

(75,108)

(75,105)

32,719

107,824

OTHER FINANCING SOURCES (USES)

Transfers in

-

-

20,084

20,084

Transfers out

(8,169)

(8,169)

(8,160)

(9)

Total Other Financing Sources (Uses)

(8,169)

(8,169)

11,924

20,075

Change in fund balance

$

(83,277)

$

(83,274)

44,643

$

127,899

FUND BALANCE

Beginning of year

31,651

End of year

$

76,294

128

City of Clayton

Supplementary Information

Non-Major Governmental Funds

For the year ended June 30, 2022

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budgetary Comparison Schedule - Presley Settlement

Variance from

Final Budget

Adopted

Final

Positive

REVENUES

Budget

Budget

Actual

(Negative)

Use of money and property

$

1,800

$

1,800

$

(2,918)

$

(4,718)

Total Revenues

1,800

1,800

(2,918)

(4,718)

EXPENDITURES

Current:

Public works

-

-

-

-

Capital outlay

-

-

-

-

Total Expenditures

-

-

-

-

Revenues Over (Under) Expenditures

1,800

1,800

(2,918)

(4,718)

OTHER FINANCING SOURCES (USES)

Transfers in

-

-

-

-

Transfers out

-

-

(20,084)

20,084

Total Other Financing Sources (Uses)

-

-

(20,084)

20,084

Change in fund balance

$

1,800

$

1,800

(23,002)

$

15,366

FUND BALANCE

Beginning of year

113,472

End of year

$

90,470

129

City of Clayton

Supplementary Information

Non-Major Governmental Funds

For the year ended June 30, 2022

Schedule of Revenues, Expenditures and Changes in Fund Balance

Budgetary Comparison Schedule - Stormwater Assessment District

Variance from

Final Budget

Adopted

Final

Positive

REVENUES

Budget

Budget

Actual

(Negative)

Special parcel taxes and assessments

$

74,109

$

74,109

$

83,017

$

8,908

Permits, licenses and fees

60,920

60,920

59,423

(1,497)

Use of money and property

600

600

(678)

(1,278)

Total Revenues

135,629

135,629

141,762

6,133

EXPENDITURES

Current:

Public works

123,653

123,653

80,214

43,439

Total Expenditures

123,653

123,653

80,214

43,439

Revenues Over (Under) Expenditures

11,976

11,976

61,548

49,572

OTHER FINANCING SOURCES (USES)

Transfers in

1,130

1,130

1,130

-

Transfers out

(41,966)

(41,966)

(41,966)

-

Total Other Financing Sources (Uses)

(40,836)

(40,836)

(40,836)

-

Change in fund balance

$

(28,860)

$

(28,860)

20,712

$

49,572

FUND BALANCE

Beginning of year

49,063

End of year

$

69,775

130

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131

INTERNAL SERVICE FUNDS

Internal service funds account for activities that provide goods or services to other City funds or department on a cost reimbursement basis. The following are the City’s internal service funds:

Capital Equipment Replacement Fund (CERF) - This fund accounts for the operation, maintenance, depreciation, and replacement of City vehicles and equipment.

Self-Insurance Fund - This fund accounts for the administration of the City’s self-insurance program and payment of workers’ compensation and liability claims.

Pension Rate Stabilization Fund - This fund stabilizes major fluctuations in annual employer pension costs driven by market factors and actuarial changes.

132

City of Clayton

Supplementary Information

Combining Statement of Net Position - Internal Service Funds

June 30, 2022

Capital

Pension Rate

Self-

Equipment

ASSETS

Replacement

Stabilization

Insurance

Total

Current assets:

Cash and investments

$

154,220

$

280,447

$

25,774

$

460,441

Noncurrent assets:

Depreciable assets, net

540,610

-

-

540,610

Total Asset

694,830

280,447

25,774

1,001,051

LIABILITIES

Current liabilities:

Accounts payable

-

-

315

315

Total Liabilities

-

-

315

315

NET POSITION

Net investment in capital assets

540,610

-

-

540,610

Unrestricted

154,220

280,447

25,459

460,126

Total Net Position

$

694,830

$

280,447

$

25,459

$

1,000,736

133

City of Clayton

Supplementary Information

Combining Statement of Revenues, Expenses and Changes in Net Position

Internal Service Funds - For the year ended June 30, 2022

Capital

Equipment

Pension Rate

Self-

Replacement

Stabilization

Insurance

Total

OPERATING REVENUES

Charges for current services

$

111,900

$

-

$

-

$

111,900

Total Operating Revenues

111,900

-

-

111,900

OPERATING EXPENSES

General and administrative

4,001

-

4,563

8,564

Depreciation and amortization

100,425

-

-

100,425

Total Operating Expenses

104,426

-

4,563

108,989

Operating Income (Loss)

7,474

-

(4,563)

2,911

NONOPERATING REVENUES (EXPENSES)

Gain (loss) on disposal of assets

6,958

-

-

6,958

Investment income (loss)

(5,202)

(8,647)

(826)

(14,675)

Total Nonoperating Revenues (Expenses)

1,756

(8,647)

(826)

(7,717)

Net (loss) Before Contributions and

9,230

(8,647)

(5,389)

(4,806)

Operating Transfers

Capital contributions

-

-

-

-

Transfers in

-

-

-

-

Change in Net Position

9,230

(8,647)

(5,389)

(4,806)

NET POSITION:

Beginning of fiscal year

685,600

289,094

30,848

1,005,542

End of fiscal year

$

694,830

$

280,447

$

25,459

$

1,000,736

134

City of Clayton

Supplementary Information

Combining Statement of Cash Flows - Internal Service Funds

For the year ended June 30, 2022

Capital

Pension Rate

Self-

Equipment

CASH FLOWS FROM OPERATING ACTIVITIES:

Replacement

Stabilization

Insurance

Total

Receipts from customers

$

111,900

$

-

$

-

$

111,900

Supplies and equipment purchased

(4,001)

-

-

(4,001)

Claims paid

-

-

(4,428)

(4,428)

Net cash provided (used) by operating activities

107,899

-

(4,428)

103,471

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES:

Transfers in

-

-

-

-

Net cash provided (used) by noncapital financing

-

-

-

-

activities

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES:

Acquisition of capital assets

(153,184)

-

-

(153,184)

Proceeds from the sale of capital assets

6,958

-

-

6,958

Other income

-

-

-

-

Net cash provided (used) by capital and related

(146,226)

-

-

(146,226)

financing activities

CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received on investments

(5,202)

(8,647)

(826)

(14,675)

Net Cash provided (used) by investing activities

(5,202)

(8,647)

(826)

(14,675)

Net increase (decrease) in cash and cash equivalents

(43,529)

(8,647)

(5,254)

(57,430)

CASH AND CASH EQUIVALENTS:

Beginning of fiscal year

197,749

289,094

31,028

517,871

End of fiscal year

$

154,220

$

280,447

$

25,774

$

460,441

RECONCILIATION OF OPERATING INCOME

(LOSS) TO NET CASH PROVIDED (USED) BY

OPERATING ACTIVITIES:

Operating income (loss)

$

7,474

$

-

$

(4,563)

$

2,911

Adjustments to reconcile operating income (loss) to

net cash provided (used) by operating activities:

Depreciation and amortization

100,425

-

-

100,425

Changes in current assets and liabilities:

Increase (decrease) in accounts payable

-

-

135

135

Net cash provided (used) by operating activities

$

107,899

$

-

$

(4,428)

$

103,471

135

AGENCY FUNDS

Agency Funds are used to account for assets held by the City in a fiduciary capacity or as an

agent for individuals, government entities and other non-public organizations. The following are reported as agency funds:

Clayton Financing Authority - Accounts for projects related to the Financing Authority.

Clayton Financing Authority 2007 Refunding Bonds - Accounts for the refunding of the Authority's 1997 Special Tax Revenue Refunding Bonds payable from revenues received by the Authority as the result of payment of debt service on the local obligations of the Middle School CFD 1990-1 Bonds.

Deposits – Represents funds held for: performance deposits, Clayton Community Gym donation deposits, refundable rental security deposits, planning services deposits, engineering plan check deposits, and other various deposits.

Diablo Estates Benefit Assessment District – Accounts for parcel owner approved real property assessments collected to maintain certain infrastructure components (including street lighting) for the Diablo Estates development.

High Street Bridge Benefit Assessment District – Accounts for real property assessments collected to maintain bridges.

Lydia Lane Sewer Benefit Assessment District – Accounts for real property assessments to be collected for construction of a sewer system.

Middle School Community Facilities District – Accounts for special parcel taxes restricted to repay indebtedness of the Middle School Community Facilities District No. 1990-1.

Oak Street Bridge Benefit Assessment District – Accounts for real property assessments collected to maintain bridges.

Oak Street Sewer Benefit Assessment District – Accounts for real property assessments to be collected for construction of a sewer system.

136

City of Clayton

Supplementary Information

Combining Statement of Changes in Assets and Liabilities - Agency Funds

For the year ended June 30, 2022

Balance

Balance

July 1, 2021

Additions

Deductions

June 30, 2022

Clayton Financing Authority

Assets:

$

(21,581)

$

587,462

Cash and investments

$

598,256

$

10,787

Total Assets

$

598,256

$

10,787

$

(21,581)

$

587,462

Liabilities:

$

(24,832)

$

587,462

Other liabilities

$

598,256

$

14,038

Total Liabilities

$

598,256

$

14,038

$

(24,832)

$

587,462

Clayton Financing Authority 2007 Refunding Bonds

Assets:

$

(2,669,381)

$

115,264

Cash and investments

$

133,317

$

2,651,328

Cash with fiscal agent

320,076

944,960

(901,739)

363,297

Accounts receivable

19,600

-

(9,412)

10,188

Investments in bonds

904,000

-

(434,000)

470,000

Total Assets

$

1,376,993

$

3,596,288

$

(4,014,532)

$

958,749

Liabilities:

$

(136,986)

$

538,749

Other liabilities

$

561,993

$

113,742

Due to bondholders

815,000

-

(395,000)

420,000

Total Liabilities

$

1,376,993

$

113,742

$

(531,986)

$

958,749

Deposits

Assets:

$

(498,030)

$

777,520

Cash and investments

$

582,355

$

693,195

Total Assets

$

582,355

$

693,195

$

(498,030)

$

777,520

Liabilities:

Other liabilities

$

-

$

2,981

$

-

$

2,981

Deposits payable

582,355

959,920

(767,736)

774,539

Total Liabilities

$

582,355

$

962,901

$

(767,736)

$

777,520

Diablo Estates Benefit Assessment District

Assets:

$

(82,429)

$

228,277

Cash and investments

$

201,274

$

109,432

Total Assets

$

201,274

$

109,432

$

(82,429)

$

228,277

Liabilities:

Accounts payable

$

22,160

$

68,644

$

(86,778)

$

4,026

Other liabilities

179,114

109,452

(64,315)

224,251

Total Liabilities

$

201,274

$

178,096

$

(151,093)

$

228,277

137

City of Clayton

Supplementary Information

Combining Statement of Changes in Assets and Liabilities - Agency Funds

For the year ended June 30, 2022

Balance

Balance

July 1, 2021

Additions

Deductions

June 30, 2022

High Street Bridge Benefit Assessment District

Assets:

$

(3,758)

$

6,843

Cash and investments

$

8,797

$

1,804

Assessments receivable

8,978

-

(916)

8,062

Total Assets

$

17,775

$

1,804

$

(4,674)

$

14,905

Liabilities:

Accounts payable

$

2,010

$

350

$

(2,010)

$

350

Notes payable

8,978

-

(916)

8,062

Due to bondholders

6,787

1,804

(2,098)

6,493

Total Liabilities

$

17,775

$

2,154

$

(5,024)

$

14,905

Lydia Lane Sewer Benefit Assessment District

Assets:

$

(40,157)

$

68,491

Cash and investments

$

68,508

$

40,140

Cash with fiscal agent

12,804

4

(2)

12,806

Assessments receivable

143,325

-

(10,000)

133,325

Total Assets

$

224,637

$

40,144

$

(50,159)

$

214,622

Liabilities:

$

(89,666)

$

81,297

Other liabilities

$

81,312

$

89,651

Due to bondholders

143,325

-

(10,000)

133,325

Total Liabilities

$

224,637

$

89,651

$

(99,666)

$

214,622

Middle School Community Facilities District

Assets:

$

(527,359)

$

(172,695)

Cash and investments

$

134,668

$

219,996

Assessments receivable

904,000

-

(434,000)

470,000

Due from bondholders

-

182,883

-

182,883

Total Assets

$

1,038,668

$

402,879

$

(961,359)

$

480,188

Liabilities:

Accounts payable

$

-

$

10,188

$

-

$

10,188

Other liabilities

134,668

224,035

(358,703)

-

Due to bondholders

904,000

-

(434,000)

470,000

Total Liabilities

$

1,038,668

$

234,223

$

(792,703)

$

480,188

138

City of Clayton

Supplementary Information

Combining Statement of Changes in Assets and Liabilities - Agency Funds

For the year ended June 30, 2022

Balance

Balance

July 1, 2021

Additions

Deductions

June 30, 2022

Oak Street Bridge Benefit Assessment District

Assets:

$

(2,769)

$

21,261

Cash and investments

$

22,065

$

1,965

Total Assets

$

22,065

$

1,965

$

(2,769)

$

21,261

Liabilities:

Accounts payable

$

1,645

$

-

$

(1,295)

$

350

Other liabilities

20,420

2,315

(1,824)

20,911

Total Liabilities

$

22,065

$

2,315

$

(3,119)

$

21,261

Oak Street Sewer Benefit Assessment District

Assets:

$

(12,769)

$

497

Cash and investments

$

1,927

$

11,339

Assessments receivable

52,726

-

(8,182)

44,544

Other assets

-

12,847

(11,880)

967

Total Assets

$

54,653

$

24,186

$

(32,831)

$

46,008

Liabilities:

Accounts payable

$

1,385

$

1,463

$

(1,384)

$

1,464

Other liabilities

542

-

(542)

-

Notes payable

52,726

-

(8,182)

44,544

Total Liabilities

$

54,653

$

1,463

$

(10,108)

$

46,008

Total - All Agency Funds

Assets:

$

(3,858,233)

$

1,632,920

Cash and investments

$

1,751,167

$

3,739,986

Cash with fiscal agent

332,880

944,964

(901,741)

376,103

Assessments receivable

1,109,029

-

(453,098)

655,931

Accounts receivable

19,600

-

(9,412)

10,188

Due from bondholders

-

182,883

-

182,883

Other assets

-

12,847

(11,880)

967

Investments in bonds

904,000

-

(434,000)

470,000

Total Assets

$

4,116,676

$

4,880,680

$

(5,668,364)

$

3,328,992

Liabilities:

Accounts payable

$

27,200

$

80,645

$

(91,467)

$

16,378

Other liabilities

1,576,305

556,214

(676,868)

1,455,651

Deposits payable

582,355

959,920

(767,736)

774,539

Notes payable

61,704

-

(9,098)

52,606

Due to bondholders

1,869,112

1,804

(841,098)

1,029,818

Total Liabilities

$

4,116,676

$

1,598,583

$

(2,386,267)

$

3,328,992

139

STATISTICAL SECTION

140

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141

STATISTICAL SECTION

TABLE OF CONTENTS

This part of the City’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City.

Page

Financial Trends

143

These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity

151

These schedules contain information to help the reader assess the City’s

most

significant local revenue sources.

Debt Capacity

159

These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information

164

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information

165

These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

142

City of Clayton

Statistical Section

Net Position by Component - Last Ten Fiscal Years

(Accrual Basis of Accounting)

2013

2014

2015

2016

Governmental activities:

Net investment in capital assets

$

29,988,389

$

29,344,437

$

28,653,515

$

28,929,140

Restricted

5,071,942

3,470,831

2,024,193

7,783,815

Unrestricted

4,829,960

6,306,416

4,781,508

7,028,670

Total governmental activities net position

39,890,291

39,121,684

35,459,216

43,741,625

Business-type activities:

Net investment in capital assets

1,322,815

1,286,748

1,250,681

1,221,999

Restricted

-

-

-

-

Unrestricted

(130,382)

(49,038)

(44,572)

(56,305)

Total business-type activities net position

1,192,433

1,237,710

1,206,109

1,165,694

Primary government:

Net investment in capital assets

31,311,204

30,631,185

29,904,196

30,151,139

Restricted

5,071,942

3,470,831

2,024,193

7,783,815

Unrestricted

4,699,578

6,257,378

4,736,936

6,972,365

Total primary government net position

$

41,082,724

$

40,359,394

$

36,665,325

$

44,907,319

Source: City of Clayton Finance Department.

143

City of Clayton

Statistical Section

Net Position by Component - Last Ten Fiscal Years

(Accrual Basis of Accounting)

2017

2018

2019

2020

2021

2022

$

29,349,667

$

28,976,510

$

29,790,706

$

29,780,115

$

28,793,685

$

29,116,205

7,731,727

12,059,042

11,915,594

12,046,964

13,156,670

9,890,048

7,835,030

3,836,715

3,009,835

3,433,238

2,492,751

5,873,482

44,916,424

44,872,267

44,716,135

45,260,317

44,443,106

44,879,735

1,184,742

1,147,485

1,110,485

1,073,743

1,038,076

1,009,203

-

-

-

-

-

-

(64,190)

(75,944)

(72,753)

(74,819)

(114,090)

(129,064)

1,120,552

1,071,541

1,037,732

998,924

923,986

880,139

30,534,409

30,123,995

30,901,191

30,853,858

29,831,761

30,125,408

7,731,727

12,059,042

11,915,594

12,046,964

13,156,670

9,890,048

7,770,840

3,760,771

2,937,082

3,358,419

2,378,661

5,744,418

$

46,036,976

$

45,943,808

$

45,753,867

$

46,259,241

$

45,367,092

$

45,759,874

144

City of Clayton

Statistical Section

Changes in Net Position - Last Ten Fiscal Years

(Accrual Basis of Accounting)

Fiscal Year

2013

2014

2015

2016

Expenses

Governmental activities:

General government

$

1,186,567

$

1,249,238

$

1,119,567

$

1,051,461

Public works

1,346,320

2,118,015

2,139,918

1,975,653

Parks and recreation services

1,100,584

352,498

339,894

583,120

Community and economic development

446,259

410,413

405,941

362,248

Public safety

1,925,266

2,016,145

2,006,052

2,060,621

Interest and fiscal charges

-

-

-

-

Total governmental activities expenses

6,004,996

6,146,309

6,011,372

6,033,103

Business-type activities:

Community gym

-

-

-

-

Endeavor Hall

60,117

65,351

66,606

67,668

Total business-type activities expenses

60,117

65,351

66,606

67,668

Total primary government expenses

$

6,065,113

$

6,211,660

$

6,077,978

$

6,100,771

Program revenues

Governmental activities:

Charges for services:

General government

$

352,124

$

567,663

$

643,070

$

355,391

Public works

315,230

296,974

418,498

321,544

Parks and recreation services

-

608

14,337

73,501

Community and economic development

137,795

54,013

25,990

100,612

Public safety

36,899

14,631

13,862

49,326

Operating grants and contributions

587,384

683,492

157,397

836,833

Capital grants and contributions

-

-

-

22,200

Total governmental activities program revenues

1,429,432

1,617,381

1,273,154

1,759,407

Business-type activities:

Charges for services:

Community gym

-

-

-

-

Endeavor hall

14,860

19,545

25,818

27,253

Operating grants and contributions

-

-

-

-

Total business-type program revenues

14,860

19,545

25,818

27,253

Net revenues (expenses)

Governmental activities

$

(4,575,564)

$

(4,528,928)

$

(4,738,218)

$

(4,273,696)

Business-type activities

(45,257)

(45,806)

(40,788)

(40,415)

Total primary government net expense

$

(4,620,821)

$

(4,574,734)

$

(4,779,006)

$

(4,314,111)

General revenues and other changes in net position

Governmental activities:

Taxes:

Property taxes

$

1,691,803

$

1,862,734

$

2,302,278

$

2,256,780

Special parcel taxes

1,093,213

1,122,349

1,155,141

1,185,651

Sales and use taxes

353,525

370,330

397,544

372,705

Business license taxes

-

-

-

133,943

Other taxes

802,651

865,752

1,339,537

-

Franchise fees

-

-

-

516,607

Payments in lieu of taxes

-

-

-

154,852

Investment income

80,622

64,319

82,909

295,904

Miscellaneous

139,161

175,082

91,230

58,694

Gain/(loss) on sale of assets

(7,817)

-

624

792

Transfers

250,456

(688,709)

88,793

-

Total governmental activities

4,403,614

3,771,857

5,458,056

4,975,928

Business type activities:

Investment income/(loss)

-

393

175

-

Miscellaneous

-

-

4,316

-

Transfers

-

-

(88,793)

-

Total business-type activities

-

393

(84,302)

-

Extraordinary and Special Items

Governmental activities:

Extraordinary gain/(loss)

-

-

(200,000)

(230,786)

Business-type activities:

Special item gain/(loss)

-

-

93,489

-

Total primary government changes in net position

Governmental activities

(171,950)

(757,071)

519,838

471,446

Business-type activities

(45,257)

(45,413)

(31,601)

(40,415)

Total primary government

$

(217,207)

$

(802,484)

$

488,237

$

431,031

Source: City of Clayton Finance Department.

145

City of Clayton

Statistical Section

Changes in Net Position - Last Ten Fiscal Years

(Accrual Basis of Accounting)

Fiscal Year

2017

2018

2019

2020

2021

2022

$

1,174,069

$

1,305,562

$

1,457,326

$

2,781,523

$

1,796,454

$

2,629,048

2,221,835

2,509,147

2,825,969

1,988,766

2,909,710

2,509,096

676,790

667,687

718,267

452,535

592,433

729,729

287,775

329,418

367,682

296,372

357,133

356,450

2,075,082

2,538,912

2,536,880

2,521,690

2,980,000

2,736,817

-

-

-

-

-

-

6,435,551

7,350,726

7,906,124

8,040,886

8,635,730

8,961,140

-

-

-

-

-

-

67,393

76,901

58,455

63,631

73,117

60,694

67,393

76,901

58,455

63,631

73,117

60,694

$

6,502,944

$

7,427,627

$

7,964,579

$

8,104,517

$

8,708,847

$

9,021,834

$

349,220

$

397,668

$

397,436

$

438,906

$

430,894

$

437,626

324,308

355,625

356,347

338,877

328,731

331,218

70,394

66,868

71,681

43,635

17,622

42,903

113,336

127,487

96,596

113,600

133,404

142,299

52,497

44,545

41,195

65,674

51,259

48,292

813,168

900,239

825,018

1,024,732

893,718

2,755,382

885,398

526,452

570,049

559,220

42,363

120,774

2,608,321

2,418,884

2,358,322

2,584,644

1,897,991

3,878,494

-

-

-

-

-

-

22,251

27,890

24,642

24,702

(1,442)

16,847

-

-

-

-

-

-

22,251

27,890

24,642

24,702

(1,442)

16,847

$

(3,827,230)

$

(4,931,842)

$

(5,547,802)

$

(5,456,242)

$

(6,737,739)

$

(5,082,646)

(45,142)

(49,011)

(33,813)

(38,929)

(74,559)

(43,847)

$

(3,872,372)

$

(4,980,853)

$

(5,581,615)

$

(5,495,171)

$

(6,812,298)

$

(5,126,493)

$

2,339,221

$

2,345,067

$

2,463,898

$

2,587,812

$

2,722,906

$

2,846,766

1,220,427

1,254,911

1,256,011

1,295,034

1,309,373

1,348,657

455,387

436,560

483,741

512,868

510,029

563,908

135,866

154,397

175,153

140,620

90,872

162,881

-

-

-

-

-

-

541,138

547,765

523,129

565,893

567,350

587,740

157,949

161,108

164,331

167,677

171,029

174,443

119,201

287,595

255,272

684,244

508,256

(281,502)

31,216

23,118

39,211

40,516

38,972

54,512

1,624

(893)

30,924

5,760

1,741

6,958

-

-

-

-

-

-

5,002,029

5,209,628

5,391,670

6,000,424

5,920,528

5,464,363

-

-

4

121

(379)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

4

121

(379)

-

-

-

-

-

-

-

-

-

-

-

-

-

1,174,799

277,786

(156,132)

544,182

(817,211)

381,717

(45,142)

(49,011)

(33,809)

(38,808)

(74,938)

(43,847)

$

1,129,657

$

228,775

$

(189,941)

$

505,374

$

(892,149)

$

337,870

146

City of Clayton

Statistical Section

Fund Balances of Governmental Funds - Last Ten Fiscal Years

(Modified Accrual Basis of Accounting)

Fiscal Year Ending June 30

2013

2014

2015

2016

General fund:

Nonspendable

$

-

$

1,242,346

$

1,029,377

$

308,064

Restricted

-

-

-

-

Committed

-

-

-

-

Assigned

182,671

34,542

-

278,853

Unassigned

5,199,914

3,871,849

4,509,255

5,031,142

Total general fund

5,382,585

5,148,737

5,538,632

5,618,059

All other governmental funds:

Nonspendable

-

-

-

3,633,951

Restricted

-

1,399,064

1,303,081

2,150,476

Committed

5,071,942

829,421

721,112

667,134

Assigned

-

2,354,314

3,309,135

2,684,533

Unassigned

(425,380)

(2,550)

(2,550)

(2,550)

Total other governmental funds

4,646,562

4,580,249

5,330,778

9,133,544

Total governmental funds

$

10,029,147

$

9,728,986

$

10,869,410

$

14,751,603

Source: City of Clayton Finance Department.

147

City of Clayton

Statistical Section

Fund Balances of Governmental Funds - Last Ten Fiscal Years

(Modified Accrual Basis of Accounting)

Fiscal Year Ending June 30

2017

2018

2019

2020

2021

2022

$

72,518

$

81,790

$

320,232

$

100,163

$

120,623

$

173,471

-

-

-

-

-

-

-

-

-

-

177,496

495,019

415,239

281,930

102,228

409,482

-

-

5,429,524

5,302,751

5,337,685

5,654,925

5,810,862

5,744,867

5,917,281

5,666,471

5,760,145

6,164,570

6,108,981

6,413,357

3,696,238

-

-

-

-

-

2,122,471

6,293,306

6,403,413

6,452,671

7,283,999

6,719,595

494,241

571,915

647,611

669,841

643,461

709,802

3,026,942

3,542,680

2,744,642

3,167,804

3,261,239

3,330,153

(2,550)

(2,550)

(223,171)

(23,566)

-

-

9,337,342

10,405,351

9,572,495

10,266,750

11,188,699

10,759,550

$ 15,254,623

$ 16,071,822

$ 15,332,640

$ 16,431,320

$

17,297,680

$

17,172,907

148

City of Clayton

Statistical Section

Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years

(Modified Accrual Basis of Accounting)

Fiscal Year

2013

2014

2015

2016

Revenues

Property taxes

$

1,691,803

$

1,862,734

$

2,302,278

$

2,256,780

Program income

10,546

10,668

10,063

81,400

Special parcel taxes and assessments

1,232,280

1,260,823

1,287,748

1,437,156

Sales and use taxes

353,525

370,330

397,544

372,705

Business license taxes and fees

-

-

-

133,943

Permits, licenses and fees

402,661

290,598

306,545

194,261

Fines, forfeitures and penalties

93,328

78,173

72,635

84,270

Intergovernmental

836,041

967,729

1,066,757

964,539

Motor vehicle in-lieu fees

-

4,703

4,590

4,554

Other in-lieu fees

145,921

148,839

151,816

154,852

Franchise fees

479,765

504,867

501,597

516,607

Service charges

125,387

338,626

366,080

342,308

Use of money and property

80,579

62,642

81,408

290,966

Other revenue

138,528

175,538

91,131

48,517

Total revenues

5,590,364

6,076,270

6,640,192

6,882,858

Expenditures

Current

General government

957,680

1,118,026

1,018,852

1,068,970

Public works

1,502,599

1,293,402

1,342,373

1,237,683

Parks and recreation services

356,445

352,498

349,862

375,554

Community and economic development

446,259

410,413

410,972

379,162

Public safety

1,867,432

1,950,034

2,005,607

2,281,621

Capital outlay

2,370,825

393,505

260,895

1,275,563

Debt service

Principal

-

-

-

-

Interest and fiscal charges

-

-

-

-

Total expenditures

7,501,240

5,517,878

5,388,561

6,618,553

Revenues over (under) expenditures

(1,910,876)

558,392

1,251,631

264,305

Other financing sources (uses)

Unrealized gains (losses)

-

-

-

-

Transfers in

2,221,820

524,187

600,458

1,026,538

Transfers out

(1,971,364)

(603,341)

(511,665)

(1,177,781)

Total other financing sources (uses)

250,456

(79,154)

88,793

(151,243)

Revenues and other financing sources over (under)

expenditures and other financing uses

(1,660,420)

479,238

1,340,424

113,062

Special and extraordinary items

Special item gain (loss)

-

(90,690)

-

Extraordinary gain (loss)

-

-

(200,000)

(230,786)

Total special and extraordinary items

-

(90,690)

(200,000)

(230,786)

Change in fund balances

$

(1,660,420)

$

388,548

$

1,140,424

$

(117,724)

Ratio of Total Debt Service Expenditures to

Noncapital Expenditures

0.00

0.00

0.00

0.00

Source: City of Clayton Finance Department

149

City of Clayton

Statistical Section

Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years

(Modified Accrual Basis of Accounting)

Fiscal Year

2017

2018

2019

2020

2021

2022

$

2,339,221

$

2,345,067

$

2,463,898

$

2,463,898

$

2,722,905

$

2,846,766

86,400

91,400

146,400

146,400

106,400

111,400

1,465,905

1,522,187

1,546,399

1,546,399

1,606,706

1,647,112

455,387

436,560

483,741

483,741

510,029

563,908

135,866

154,397

175,153

175,153

90,872

162,881

209,026

356,052

212,242

212,242

172,297

254,352

92,662

110,787

82,375

82,375

118,766

151,409

1,706,688

1,178,659

1,312,528

1,312,528

911,240

2,772,298

-

-

-

-

-

-

157,949

161,108

164,331

164,331

171,029

174,443

541,138

547,765

523,129

523,129

567,350

587,740

311,796

329,164

325,078

325,078

297,393

305,645

118,210

274,244

385,696

385,696

132,791

(324,916)

40,186

23,168

35,723

35,723

30,657

41,492

7,660,434

7,530,558

7,856,693

7,856,693

7,438,435

9,294,530

1,194,606

1,183,609

1,317,973

1,317,973

1,547,319

2,697,067

1,519,992

1,592,903

1,621,629

1,621,629

1,908,291

2,141,455

458,294

433,764

477,266

477,266

349,854

477,400

309,048

317,284

352,163

352,163

318,173

299,175

2,265,845

2,363,298

2,365,339

2,365,339

2,605,103

2,814,860

1,409,599

654,531

2,146,778

2,146,778

213,610

1,102,349

-

-

-

-

-

-

-

-

-

-

-

-

7,157,384

6,545,389

8,281,148

8,281,148

6,942,350

9,532,306

503,050

985,169

(424,455)

(424,455)

496,085

(237,776)

-

-

(214,727)

(214,727)

370,275

58,091

497,960

481,974

1,261,171

1,261,171

494,175

3,251,504

(497,960)

(649,974)

(1,361,171)

(1,361,171)

(494,175)

(3,251,504)

-

(168,000)

(314,727)

(314,727)

370,275

58,091

503,050

817,169

(739,182)

(739,182)

866,360

(179,685)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$

503,050

$

817,169

$

(739,182)

$

(739,182)

$

866,360

$

(179,685)

0.00

0.00

0.00

0.00

0.00

0.00

150

City of Clayton

Statistical Section

Property Tax Levies and Collections

Last Ten Fiscal Years

Property Tax Collections

5,000,000

4,500,000

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

-

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Fiscal Years

Collected within the Fiscal Year

of the Levy

Total Collections to Date

Fiscal Year

Total Tax Levy for

Percentage of

Percentage of

Ended June 30

Fiscal Year 1

Amount

Levy

Amount

Levy

2013

1,862,734

1,862,734

100%

1,862,734

100%

2014

2,302,278

2,302,278

100%

2,302,278

100%

2015

2,256,780

2,256,780

100%

2,256,780

100%

2016

2,339,221

2,339,221

100%

2,339,221

100%

2017

3,599,978

3,599,978

100%

3,599,978

100%

2018

3,719,909

3,719,909

100%

3,719,909

100%

2019

2,587,812

2,587,812

100%

2,587,812

100%

2020

4,170,045

4,170,045

100%

4,170,045

100%

2021

4,329,611

4,329,611

100%

4,329,611

100%

2022

4,605,278

4,605,278

100%

4,605,278

100%

Source: City of Clayton Finance Department

  1. Property tax levies above include secured and unsecured general ad valorem property taxes, restricted local special parcel taxes, and property taxes pertaining to the Redevelopment Property Tax Trust Fund.
  2. The City is enrolled in the "Teeter" Plan, where the County remits the entire amount levied and handles all delinquencies, retaining the interest and penalties.

151

City of Clayton

Statistical Section

Assessed Value and Estimated Actual Value of Taxable Property

Last Ten Fiscal Years

Net Taxable Assessed Value

Millions

$2,500

$2,000

$1,500

$1,000

$500

$‐

2013 2014 2015 2016 2017 2018 2019 2020 2021

Fiscal Years

Fiscal Year

SBE

Net Total Assessed

Total Direct

Ended June 30

Secured

Unsecured

Nonunitary

Valuation

Tax Rate 2

2013

1,592,441,490

12,107,626

-

1,604,549,116

34.145%

2014

1,724,741,279

12,046,811

-

1,736,788,090

6.992%

2015

1,855,952,809

10,423,772

-

1,866,376,581

6.587%

2016

1,966,021,862

24,268,730

-

1,990,290,592

6.627%

2017

2,052,672,378

24,551,781

-

2,077,224,159

6.642%

2018

2,138,664,468

22,857,474

-

2,161,521,942

6.650%

2019

2,238,046,407

24,573,625

-

2,262,620,032

6.667%

2020

2,335,781,999

28,167,199

-

2,363,949,198

6.684%

2021

2,419,252,507

28,191,208

-

2,447,443,715

6.697%

2022

2,503,001,127

31,341,543

2,534,342,670

6.697%

Source: HdL, Coren & Cone, Contra Costa County Assessor Tax Rolls

  1. In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a maximum rate of 1.0% based up on the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to the maximum increase of 2.0%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
  2. City's share of 1.0% basic levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. Tax Rate Area 13-015 is represented here for this report.

152

City of Clayton

Statistical Section

Taxable Assessed Value By Source

Last Ten Fiscal Years

Fiscal Year Ending June 30

Category

2013

2014

2015

2016

Residential ¹

$

1,525,145,282

$

1,664,638,727

$

1,797,596,765

$

1,904,368,929

Commercial

42,498,296

39,271,189

38,942,508

41,544,210

Dry Farm

Gov't Owned

2,509,634

2,521,025

2,571,392

Institutional

2,460,428

Irrigated

126,707

129,240

Miscellaneous

764,183

197,555

198,449

202,412

Recreational

5,364,139

5,364,585

5,364,688

5,365,145

Vacant

16,082,455

12,630,349

11,329,374

11,969,774

Unsecured

12,107,626

12,046,811

10,423,772

24,268,730

Exempt ²

(24,547,599)

(25,038,500)

(26,156,667)

(26,679,230)

Unknown

-

-

-

-

Totals

$

1,604,549,116

$

1,736,788,090

$

1,866,376,581

$

1,990,290,592

Total Direct Rate

0.34145

0.06992

0.06587

0.06627

Taxable Assessed Value By Source

Millions

$2,500

$2,400

$2,300

$2,200

$2,100

$2,000

$1,900

$1,800

$1,700

$1,600

$1,500

2013

2014

2015

2016

2017

2018

2019

2020

2022

Fiscal Year Ending June 30

Category

Residential ¹

Commercial

Dry Farm

Gov't Owned

Institutional

Irrigated

Miscellaneous

Recreational

Vacant

Unsecured

Exempt ²

Unknown

Source: HdL, Coren & Cone, Contra Costa County Assessor Tax Rolls

  1. In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a maximum rate of 1.0% based up on the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to the maximum increase of 2.0%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
  2. Exempt values are not included in total.
  3. California cities do not set their own direct tax rate. The State Constitution establishes the rate at 1.0% and allocates a portion of that amount by an annual calculation to all the taxing entities within a tax rate area. The City of Clayton

153

City of Clayton

Statistical Section

Taxable Assessed Value By Source

Last Ten Fiscal Years

Fiscal Year Ending June 30

2017

2018

2019

2020

2021

2022

$

1,988,952,192

$

2,067,562,369

$

2,165,479,800

$

2,266,477,116

$

2,348,456,415

$

2,430,095,644

41,858,935

47,590,673

47,779,713

48,208,120

49,037,518

50,373,722

11,134,894

11,399,590

11,865,579

12,060,444

2,610,603

2,662,812

3,253,330

2,729,354

2,783,939

2,812,779

205,496

209,603

129,549

140,719

143,532

145,018

6,302,648

7,403,121

7,402,753

4,957,742

5,058,784

5,055,770

12,742,504

13,235,890

2,866,368

1,869,358

1,906,740

2,457,750

24,551,781

22,857,474

24,573,625

28,167,199

28,191,208

31,341,543

(27,086,036)

(27,627,706)

(28,243,119)

(28,807,933)

(29,384,046)

(29,688,415)

-

-

-

-

-

-

$

2,077,224,159

$

2,161,521,942

$

2,262,620,032

$

2,363,949,198

$

2,447,443,715

$

2,534,342,670

0.06642

0.06650

0.06667

0.06684

0.06697

0.06711

154

City of Clayton

Statistical Section

Property Tax Rates - Direct and Overlapping Governments

Last Ten Fiscal Years (Rate per $100 of Assessed Value)

Fiscal Year Ending June 30

2012

2013

2014

2015

City Direct Rates:

City of Clayton General Fund 1

0.06628

0.06628

0.06628

0.06628

Clayton Light Maintenance District No. 1 2

0.01039

0.01039

0.01039

0.01039

Direct and Overlapping Rates:

Basic Levy 3

1.00000

1.00000

1.00000

1.00000

Bay Area Rapid Transit (BART) Bond

0.00410

0.00430

0.00750

0.00450

Contra Costa Community College Bond

0.01440

0.00870

0.01330

0.02520

Contra Costa Water Land Levy

0.00510

0.00450

0.00420

0.00370

East Bay Regional Park Bond

0.00710

0.00510

0.00780

0.00850

Mt. Diablo School Bond

0.06120

0.08710

0.07400

0.08530

Total Direct and Overlapping Rates

1.09190

1.10970

1.10680

1.12720

City's Share of 1% Levy Per Prop 13 ³

0.06628

0.06628

0.06628

0.06628

Redevelopment Rate ⁴

1.01220

-

-

-

Total Direct Rate ⁵

0.34460

0.34145

0.06992

0.06587

Source: HdL, Coren & Cone, Contra Costa County Assessor 2010-11 to 2019-20 tax rate table.

  1. City's share of 1.0% basic levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. Tax Rate Area 13-015 is represented here for this report.
  2. City's share of 1.0% basic levy is based on the City's share of the Light Maintenance District No. 1 tax rate area with the largest net taxable value within the City. Tax Rate Area 13-002 is represented here for this report.
  3. In 1978, California voters passed Proposition 13 which caps the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of voter approved bonds from various agencies.

155

City of Clayton

Statistical Section

Property Tax Rates - Direct and Overlapping Governments

Last Ten Fiscal Years (Rate per $100 of Assessed Value)

Fiscal Year Ending June 30

2016

2017

2018

2019

2020

2021

2022

0.06628

0.06628

0.06628

0.06628

0.06628

0.06628

0.06628

0.01039

0.01039

0.01039

0.01039

0.01039

0.01039

0.01039

1.00000

1.00000

1.00000

1.00000

1.00000

1.00000

1.00000

0.00260

0.00800

0.00840

0.00700

0.01200

0.01390

0.00600

0.02200

0.01200

0.01140

0.01100

0.01880

0.01610

0.01760

0.00350

0.00320

0.00300

0.00280

0.00260

0.00250

0.00230

0.00670

0.00320

0.00210

0.00210

0.00940

0.00140

0.00200

0.08120

0.07640

0.07900

0.09250

0.09080

0.09090

0.08980

1.11600

1.10280

1.10390

1.11540

1.13360

1.12480

1.11770

0.06628

0.06628

0.06628

0.06628

0.06628

0.06628

0.06628

-

-

-

-

-

-

-

0.06627

0.06642

0.06650

0.06667

0.06684

0.06697

0.06697

156

City of Clayton

Statistical Section

Principal Property Tax Payers

Current Year and Nine Years Ago

Fiscal Year Ending June 30, 2012

Property Owner

Primary Use, Primary Agency

Secured

Parcels

Value

% of Net AV

1) Safeway Stores, Inc ¹

Commercial, Successor Agency

1

$

10,850,709

0.68%

2) Clayton Station Shopping Center ¹

Commercial, Successor Agency

4

9,416,419

0.59%

3)

Albert D. Jr. & Sandra Seeno Trust

Vacant, Clayton General Fund

1

6,100,000

0.38%

4) NGP Realty Sub LP

Recreational, Successor Agency

17

5,362,963

0.34%

5)

Diamond Terrace Investors

Commercial, Successor Agency

1

5,295,820

0.33%

6)

Endashiian LLC

Commercial, Successor Agency

1

3,332,044

0.21%

7)

Comcast

Unsecured, Successor Agency

-

-

0.00%

8) Village Oaks LLC

Commercial, Successor Agency

2

2,748,766

0.17%

9) Ocean West Nevada Corporation

Commercial, Successor Agency

1

2,336,664

0.15%

10) Joe Leggallet Trust

Institutional, Successor Agency

1

2,128,538

0.13%

Top Ten Total

29

$

47,571,923

2.99%

City Total

$

1,592,441,490

Fiscal Year Ending June 30, 2022

Property Owner

Primary Use, Primary Agency

Secured

Parcels

Value

% of Net AV

1)

Comcast

Unsecured, Clayton General Fund

-

$

-

0.00%

2) Safeway Stores, Inc ¹

Commercial, Successor Agency

1

11,685,859

0.47%

3) Clayton Station Shopping Center ¹

Commercial, Successor Agency

4

10,926,808

0.44%

4)

Albert D. Jr. & Sandra Seeno Trust

Dry Farm, Clayton General Fund

1

8,660,000

0.35%

5) 1026 Oak LLC

Commercial, Successor Agency

1

5,140,133

0.21%

6)

William Patrick Jordan Trust

Residential, Successor Agency

6

4,724,947

0.19%

7)

Elaine HOM

Commercial, Successor Agency

1

4,674,799

0.19%

8)

Endashiian LLC

Commercial, Successor Agency

1

3,866,506

0.15%

9) Village Oaks LLC

Commercial, Successor Agency

2

3,189,663

0.13%

10) Empire Acres LLC

Residential, Successor Agency

5

2,716,014

0.11%

Top Ten Total

22

$

55,584,729

2.22%

City Total

$

2,503,001,127

Source: HdL, Coren & Cone, Contra Costa County Assessor 2011-12 & 2021-22 Combined Tax Rolls & the SBE Non-Unitary Tax Roll

  1. Pending appeals on parcels

157

City of Clayton

Statistical Section

Principal Property Tax Payers

Current Year and Nine Years Ago

Fiscal Year Ending June 30, 2012

Unsecured

Combined

Parcels

Value

% of Net AV

Value

% of Net AV

-

$

-

0.00%

$

10,850,709

0.68%

-

-

0.00%

9,416,419

0.59%

-

-

0.00%

6,100,000

0.38%

-

-

0.00%

5,362,963

0.33%

-

-

0.00%

5,295,820

0.33%

-

-

0.00%

3,332,044

0.21%

4

2,937,441

24.26%

2,937,441

0.18%

-

-

0.00%

2,748,766

0.17%

-

-

0.00%

2,336,664

0.15%

-

-

0.00%

2,128,538

0.13%

4

$

2,937,441

24.26%

$

50,509,364

3.15%

$

12,107,626

$

1,604,549,116

Fiscal Year Ending June 30, 2022

Unsecured

Combined

Parcels

Value

% of Net AV

Value

% of Net AV

6

$

22,962,583

73.27%

$

22,962,583

0.91%

-

-

0.00%

11,685,859

0.46%

-

-

0.00%

10,926,808

0.43%

-

-

0.00%

8,660,000

0.34%

-

-

0.00%

5,140,133

0.20%

-

-

0.00%

4,724,947

0.19%

-

-

0.00%

4,674,799

0.18%

-

-

0.00%

3,866,506

0.15%

-

-

0.00%

3,189,663

0.13%

-

-

0.00%

2,716,014

0.11%

6

$

22,962,583

73.27%

$

78,547,312

3.10%

$

31,341,543

$

2,534,342,670

158

City of Clayton

Statistical Section

Ratios of Debt Outstanding

Last Ten Fiscal Years

Total Outstanding Debt

1

1

1

1

1

1

0

0

0

0

-

2013 2014 2015 2016 2017 2018 2019 2020 2021

Fiscal Year

Fiscal Year

Tax Allocation

Ended

Percentage of Total

Percent of

June 30

Bonds 1

Assessed Value

Personal Income

Per Capita

2013

-

0.000%

0.000%

-

2014

-

0.000%

0.000%

-

2015

-

0.000%

0.000%

-

2016

-

0.000%

0.000%

-

2017

-

0.000%

0.000%

-

2018

-

0.000%

0.000%

-

2019

-

0.000%

0.000%

-

2020

-

0.000%

0.000%

-

2021

-

0.000%

0.000%

-

2022

-

0.000%

0.000%

-

Source: City of Clayton Finance Department.

  1. The balance of Tax Allocation Bonds was transferred to the Redevelopment Successor Agency as of February 1, 2012.

159

City of Clayton

Statistical Section

Computation of Direct and Overlapping Debt

June 30, 2022

Percent

Gross Bonded Debt

Applicable

Net

Overlapping Debt

Balance

to City

Bonded Debt

100300

County General

$

393,729,873

1.081

$

3,622,597

202000

Contra Costa Fire

26,670

2.343

623,330

400800

San Francisco Bay Area Rapid Transit District

660,703,057

1.081

7,150,426

402700

East Bay Regional Park District

77,146,356

1.081

834,913

759500

Mt. Diablo 2002 Bond

244,095,000

5.282

12,929,512

759600

Mt. Diablo 2010 Bond

269,216,615

5.282

14,260,183

759708

Mt. Diablo 2018 Bond

14,538,000

5.282

770,066

792100

Contra Costa Community College 2002 Bond

311,230,151

1.085

3,379,442

792200

Contra Costa Community College 2006 Bond

354,509,849

1.085

3,849,388

792300

Contra Costa Community College 2014 Bond

271,130,000

1.085

2,944,021

Total Overlapping Debt

$

50,363,878

2021-22 Assessed Valuation: $1,693,258,542 after deducting $841,084,128 incremental value.

Debt to Assessed Valuation Ratios:

Direct Debt

0.00%

Overlapping Debt

2.97%

Total Debt

2.97%

Source: HdL, Coren & Cone, Contra Costa County Assessor & Auditor combined 2020-21 lien date tax rolls.

This report reflects debt which is being repaid through voter-approved property tax indebtedness. It excludes mortgage revenue, tax allocation bonds, interim financing obligations, non-bonded capital lease obligations, and certificates of participation.

Overlapping governments are those that coincide at least in part, with the geographic boundaries of the city. The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.

160

City of Clayton

Statistical Section

Legal Debt Margin

Last Ten Fiscal Years

Fiscal Year Ending

2013

2014

2015

2016

Assessed valuation

$

1,580,001,517

$

1,711,749,590

$

1,840,219,914

$

1,963,611,362

Add back exempted real property

24,547,599

25,038,500

26,156,667

26,679,230

Total assessed valuation

$

1,604,549,116

$

1,736,788,090

$

1,866,376,581

$

1,990,290,592

Debt limit percentage 1

3.75%

3.75%

3.75%

3.75%

Debt limit

$

60,170,592

$

65,129,553

$

69,989,122

$

74,635,897

Total net debt applicable to limit

$

-

$

-

$

-

$

-

Legal Debt margin

$

60,170,592

$

65,129,553

$

69,989,122

$

74,635,897

Total debt applicable to the limit as a

percentage of debt limit

0.00%

0.00%

0.00%

0.00%

Source: City of Clayton Finance Department.

  1. The government code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). Although the statutory debt limit has not been amended by the State since this change, the percentages presented in the above computations have been proportionately modified to 3.75% (25% of 15%) for the purpose of this calculation in order to be consistent with the computational effect of the debt limit at the time of the

161

City of Clayton

Statistical Section

Legal Debt Margin

Last Ten Fiscal Years

Fiscal Year Ending

2017

2018

2019

2020

2021

2022

$

2,050,138,123

$

2,133,894,236

$

2,234,376,913

$

2,335,141,265

$

2,418,059,669

$

2,504,654,255

27,086,036

27,627,706

28,243,119

28,807,933

29,384,046

29,688,415

$

2,077,224,159

$

2,161,521,942

$

2,262,620,032

$

2,363,949,198

$

2,447,443,715

$

2,534,342,670

3.75%

3.75%

3.75%

3.75%

3.75%

3.75%

$

77,895,906

$

81,057,073

$

84,848,251

$

88,648,095

$

91,779,139

$

95,037,850

$

-

$

-

$

-

$

-

$

-

$

-

$

77,895,906

$

81,057,073

$

84,848,251

$

88,648,095

$

91,779,139

$

95,037,850

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

162

City of Clayton

Statistical Section

Bonded Debt Pledged Revenue Coverage

Last Ten Fiscal Years

Tax Allocation Bonds

Fiscal Year

Debt Service 1

Ended

June 30

Tax Increment

Principal

Interest

Coverage Ratio

2013

-

-

-

-

2014

-

-

-

-

2015

-

-

-

-

2016

-

-

-

-

2017

-

-

-

-

2018

-

-

-

-

2019

-

-

-

-

2020

-

-

-

-

2021

-

-

-

-

2022

-

-

-

-

Source: City of Clayton Finance Department.

  1. The balance of the tax allocation bonds was transferred to the Successor Agency as of February 1, 2012. Principal and interest payments are recorded through January 31, 2012.

163

City of Clayton

Statistical Section

Demographic and Economic Statistics

Last Ten Fiscal Years

City Population

11,800

11,600

Population

11,400

11,200

11,000

10,800

10,600

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Year ending December 31

Contra Costa

City

City

Personal Income

Per Capita Personal

Unemployment

Population %

Calendar Year

Population

(in Thousands)

Income

Rate

County Population 1

of County

2011

10,996

577,972

52,562

2.5%

1,056,064

1.04%

2012

11,093

562,914

50,745

1.7%

1,065,117

1.04%

2013

11,200

567,885

50,704

1.4%

1,074,702

1.04%

2014

11,209

581,063

51,839

5.4%

1,087,008

1.03%

2015

11,209

620,092

55,320

4.4%

1,102,871

1.02%

2016

11,284

628,783

55,723

3.9%

1,123,429

1.00%

2017

11,431

656,122

57,398

3.1%

1,149,363

0.99%

2018

11,653

694,323

59,583

1.8%

1,155,879

1.01%

2019

11,337

776,778

68,517

1.4%

1,153,561

0.98%

2020

11,268

817,954

72,590

5.3%

1,165,927

0.97%

2021

10,863

761,054

70,059

6.1%

1,156,555

0.94%

  1. Source: California State Department of Finance Price and Population Information letter to local governments. Source of other information shown: HdL, Coren & Cone, Demographic and Economic Statistics Report.

164

City of Clayton

Statistical Section

Full-Time Equivalent City Employees by Function

Last Ten Fiscal Years

Fiscal Year Ending June 30

Function:

2013

2014

2015

2016

General Government:

Management Services

2.00

2.00

2.00

2.00

Finance

2.30

2.30

2.30

2.30

City Clerk/Human Resources

1.00

1.00

1.00

1.00

Public Safety:

5.30

5.30

5.30

5.30

Sworn Officers

11.00

11.00

11.00

11.00

Non-Sworn/Administration

2.00

2.00

2.00

2.00

13.00

13.00

13.00

13.00

Public Works 1

3.50

3.40

3.10

3.50

Parks & Recreation 1

1.50

1.60

1.90

1.50

Community & Economic

Development:

Planning Services

1.60

1.60

1.60

1.60

Code Enforcement

0.30

0.30

0.30

0.30

1.90

1.90

1.90

1.90

Totals

25.20

25.20

25.20

25.20

Source: City of Clayton Finance Department, Adopted Budgets.

  1. Full-time equivalent figure for maintenance personnel allocated to

bl k d k &

165

City of Clayton

Statistical Section

Full-Time Equivalent City Employees by Function

Last Ten Fiscal Years

Fiscal Year Ending June 30

2017 2018 2019 2020 2021 2022

2.00

2.00

2.00

2.00

2.00

2.00

2.30

2.30

2.30

2.30

2.30

3.30

1.00

1.00

1.00

1.00

1.00

1.00

5.30

5.30

5.30

5.30

5.30

6.30

11.00

11.00

11.00

11.00

11.00

11.00

2.00

2.00

2.00

2.00

2.00

2.00

13.00

13.00

13.00

13.00

13.00

13.00

4.80

4.50

4.50

4.50

4.50

4.50

1.20

1.50

1.50

1.50

1.50

1.50

1.60

1.60

1.60

1.60

1.60

1.80

0.30

0.30

0.30

0.30

0.30

0.30

1.90

1.90

1.90

1.90

1.90

2.10

26.20

26.20

26.20

26.20

26.20

27.40

166

City of Clayton

Statistical Section

Operating Indicators by Function

Last Ten Fiscal Years

Fiscal Year Ending

Function:

2013

2014

2015

2016

Police:

Police calls for service

5,962

5,858

7,303

6,730

Parking violations

125

40

53

53

Traffic citations

585

664

653

518

Physical arrests

201

137

200

219

Public Works:

Storm drains inspected

*

*

*

500

Trees trimmed

*

*

*

70

Park maintenance (acres)

*

*

*

19.07

Street signs maintained

*

*

*

350

Traffic signals maintained

*

*

*

13

Streetlights maintained

*

*

*

1,200

Parks and Recreation Services:

Endeavor Hall rentals (days)

*

*

*

135

Hoyer Hall rentals

*

*

*

33

Ballfields (hours rented)

*

*

*

1,512

Community and Economic

Development:

Planning permits issued

*

*

*

161

Code enforcement cases closed

*

*

*

61

Building permits issued

201

376

430

386

General Government:

Business licenses issued

*

547

707

645

Home occupation applications

*

*

20

Number of recruitments

*

*

*

5

Source: Clayton Finance Department, Contra Costa County Building Department, Clayton Planning Department, Clayton Police Department, Clayton Maintenance Department.

167

City of Clayton

Statistical Section

Operating Indicators by Function

Last Ten Fiscal Years

Fiscal Year Ending

2017

2018

2019

2020

2021

2022

6,650

7,497

7,545

8,419

6,164

5,804

151

132

146

572

390

435

494

506

386

289

272

327

150

169

169

94

67

180

500

500

56

500

500

500

70

70

316

412

385

1350

19.07

19.07

19.07

19.07

19.07

19.07

350

350

17

212

160

210

13

13

7

13

13

13

1,200

1,200

89

1,196

1,200

111

144

138

139

86

2

37

53

39

92

33

0

24

1,170

1,047

1,225

386

922

1137

107

182

187

36

87

51

93

43

79

47

101

403

475

424

232

401

777

840

741

768

646

708

16

28

22

14

18

26

3

6

3

5

6

13

168

City of Clayton

Statistical Section

Capital Asset Statistics by Function

Last Ten Fiscal Years

Fiscal Year Ending June 30

Function:

2013

2014

2015

2016

Public Safety:

Automated license plate readers

0

0

0

0

Police stations

1

1

1

1

Patrol units

*

*

8

10

Situational awareness traffic cameras

0

0

0

0

Trailers/Trucks

*

*

2

2

Public Works:

City owned parking lots

6

6

6

6

Community facilities

*

*

3

3

Curb lane miles

*

*

*

82

Manholes

*

*

*

162

Miles of storm drains

*

*

*

32.479

Number of catch basins

*

*

*

968

Number of street islands/medians

*

*

*

50

Miles of "v" ditches

*

*

*

15

Parking meters

0

0

0

0

Street signs

*

*

*

2,000

Streetlights (City owned)

*

*

*

500

Tractors/Trailers

*

*

11

12

Traffic signals (intersections)

*

*

13

13

Work trucks

*

*

8

8

Parks and Recreation Services:

Acres of city parks

19.07

19.07

19.07

19.07

Acres of landscaped area (excl. parks)

46

46

46

46

Acres of open space

515.51

515.51

515.51

515.51

Acres of parks and irrigation

50

50

50

50

Miles of creekside trails

7

7

7

7

Miles of open space trails

20

20

20

20

Number of city parks

7

7

7

7

Number of city trees

3,000

3,000

3,000

3,000

Number of pedestrian bridges

9

9

9

9

Number of children playgrounds

4

4

4

4

Number of playfields

4

4

4

4

169

City of Clayton

Statistical Section

Capital Asset Statistics by Function

Last Ten Fiscal Years

Fiscal Year Ending June 30

2017

2018

2019

2020

2021

2022

0

6

6

6

6

6

1

1

1

1

1

1

11

10

10

10

10

10

0

4

4

4

4

4

2

2

2

2

2

2

6

6

6

6

6

6

3

3

3

3

3

3

82

82

82

82

82

82

162

162

162

162

162

162

32.479

32.479

32.479

32.479

32.479

32.479

968

968

968

968

968

968

50

50

50

50

50

50

15

15

15

15

15

15

0

0

0

0

0

0

2,000

2,000

2,015

2015

2015

2015

500

500

500

500

500

500

13

13

14

14

14

14

13

13

13

13

13

13

8

8

7

8

8

8

19.07

19.07

19.07

19.07

19.07

19.07

46

46

46

46

46

46

515.51

515.51

515.51

515.51

515.51

515.51

50

50

50

50

50

50

7

7

7

7

7

7

20

20

20

20

20

20

7

7

7

7

7

7

3,000

3,000

3,000

3000

3000

3000

9

9

9

9

9

9

4

4

4

4

4

4

4

4

4

4

4

4

170

General Information:

Date of Incorporation

March 18, 1964

Form of Government

Council-Manager

Number of authorized City employees

27

Population:

Population

11,070

Median age

46.3

Median household income

$153,607

Registered voters

8,477

Area in square miles

4.3

Miles of Streets:

Lane miles

44.9

Pavement condition index

79/100 ["Very Good" rating]

Fire Protection (CalFire Services Clayton)

Number of stations

1

Police Protection

Number of stations

1

Number of patrol vehicles

10

Number of sworn personnel

11

Education

Elementary Schools:

1

Mt Diablo Elementary

Middle Schools:

1

Diablo View Middle School

Library (Contracted with Contra Costa County)

Number of libraries

1

Parks & Community Facilities

Park sites

7

Park acreage

19.07

Open space acreage

515.51

Open space trail miles

20

Creekside trail miles

7

Endeavor Hall

1

Hoyer Hall (in the library)

1

City Hall Conference Room

1

Source: City of Clayton Finance Department, Contra Costa County Library, City of Clayton City Clerk, HdL "Demographic and Economics Statistics" Report for calendar year 2018, US Census, DataUSA.

171

Independent Auditor’s Report

Members of the City Council City of Akutan

Akutan, Alaska

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Akutan, Alaska, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Akutan, Alaska’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Akutan, Alaska, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Akutan, Alaska, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter

Change in Accounting Principle

As discussed in Note 14 to the financial statements, in 2022, the City implemented GASB Statement No. 87, Leases, which established standards of accounting and financial reporting for leases by lessees and lessors. The requirements of this Statement apply to financial statements of all state and local governments.

The new standard requires the City to recognize certain lease assets and liabilities for leases. It establishes a single model for lease accounting based on the underlying principle that leases are financings of the right to use an underlying asset for a period of time. Under this Statement, a lessee is required to recognize a liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about the City’s leasing activities. Our opinion is not modified with respect to this matter.

1

3000 C Street N. Suite 201 Anchorage, Alaska 99503 Phone 907-274-2992 Fax 907-274-2993 Offices in Juneau and Soldotna A Professional Corporation

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Akutan, Alaska’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards , we:

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the budgetary comparison information, Schedule of the City’s Proportionate Share of the Net Pension/OPEB Liability (Asset)- Public Employees’ Retirement System, Schedule of the City’s Contributions – Public Employees’ Retirement System, and Notes to the Required Supplementary information on pages 42 and 43-48, respectively, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Management has omitted Management, Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Akutan, Alaska’s basic financial statements. The information listed in the table of contents as “Supplementary Information”, which includes Major Governmental funds: Schedule of Revenues, Expenditures and changes in fund balance- Budget and Actual (where applicable), Other Governmental Funds: Combining Balance Sheet, Combining Statement of Revenues, Expenditures and Changes in Fund Balances, schedule of expenditures of federal awards and notes to the schedule, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our report dated March 22, 2023, on our consideration of the City of Akutan, Alaska’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Akutan, Alaska’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Akutan, Alaska’s internal control over financial reporting and compliance.

Anchorage, Alaska March 22, 2023